Srinagar, February 6 : REC Limited has announced robust financial results for the third quarter of FY25, with a 23% increase in net profit and an interim dividend of Rs 4.30 per share. The company’s continued growth across all verticals, strategic interest rate adjustments, and efficient financial management have contributed to this impressive performance.
REC reported a standalone net profit of Rs 4,029 crore for Q3 FY25, up from Rs 3,269 crore in the same quarter last year, reflecting a 23% growth. The company’s net interest income also saw a 19% rise, reaching Rs 4,930 crore from Rs 4,153 crore. Revenue from operations surged 18% to Rs 14,157 crore, while total income stood at Rs 14,173 crore, marking a similar 18% increase.
The company also improved its asset quality, with net credit-impaired assets reducing to 0.74% from 0.82%. Meanwhile, REC’s average cost of funds dropped by 10 basis points (bps) to 7.18%, leading to an increase in spreads and net interest margins.
For the nine-month period ending December 31, 2024, REC’s standalone net profit reached Rs 11,477 crore, up 15% from Rs 10,003 crore in the previous year. The company’s disbursements grew by 19% to Rs 1,45,647 crore, with a significant focus on the renewable energy sector. Disbursements to renewables jumped by 79% to Rs 17,612 crore from Rs 9,858 crore in the previous year.
REC’s loan book, or Assets Under Management (AUM), continued its upward trend, reaching Rs 5.65 lakh crore, compared to Rs 4.97 lakh crore a year ago. The company’s market capitalization also saw a 21% increase, touching Rs 1,31,844 crore.
With strong profits, REC’s net worth rose to Rs 76,502 crore, an 18% YoY increase. The company’s capital adequacy ratio remains robust at 25.33%, signaling ample financial strength to support future expansion.
In line with its tradition of rewarding shareholders, REC’s Board of Directors has declared a third interim dividend of Rs 4.30 per share.
With a solid financial foundation, growing investments in renewables, and a disciplined approach to financial management, REC continues to reinforce its position as a leader in the power sector financing space.
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