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REC Limited Achieves Record Annual Profit with Highest-Ever Net Income

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REC Limited, a prominent non-banking financial entity in the energy sector, has achieved a significant milestone by reporting its highest-ever annual net profit. In the fourth quarter, its standalone net profit surged by 34% to ₹4,016 crore compared to the corresponding period last year. This growth was primarily fueled by a substantial 29% increase in net interest income, reaching ₹4,407 crore. For the quarter ending March 31, 2024, revenue from operations saw a notable 25% spike, amounting to ₹12,613 crore, while total income also rose by 25% to ₹12,643 crore.

For the fiscal year FY24, REC Limited witnessed a remarkable 27% surge in net profit, totaling ₹14,019 crore, compared to the previous year. Net interest income witnessed an 18% rise, reaching ₹16,167 crore. Moreover, revenue from operations escalated to ₹47,146 crore, reflecting a 20% increase, and total income followed suit, growing by 20% to ₹47,214 crore compared to the preceding year. In line with this performance, the company’s board declared a final dividend of ₹5 per equity share (on a face value of ₹10 each), resulting in a total dividend of ₹16 per equity share for FY24.

Throughout the fiscal year, REC Limited sanctioned a total of ₹3,58,816 crore, marking a 34% increase, with substantial allocations to the renewable sector amounting to ₹1,36,516 crore, reflecting an impressive 533% surge. Disbursements also soared to ₹1,61,462 crore, representing a substantial 67% increase from the previous year.

REC Limited attributed its record-breaking annual profit to improved asset quality, effective resolution of stressed assets, resetting of lending rates, and efficient management of finance costs. Consequently, the company’s Earnings Per Share (EPS) for the year ending March 31, 2024, surged by 27% to ₹53.11 per share, compared to ₹41.85 per share as of March 31, 2023.