In a significant milestone, REC reported its highest-ever annual net profit at ₹14,019 crores, marking a substantial increase from the previous fiscal year. The company also declared a final dividend of ₹5 per share, reinforcing its commitment to rewarding shareholders.
Here are the operational and financial highlights:
Q4 FY24 vs. Q4 FY23 (Standalone)
- Revenue from operations surged to ₹12,613 crore, up 25% from ₹10,113 crores.
- Total income stood at ₹12,643 crore, reflecting a 25% increase from ₹10,124 crores.
- Net interest income rose to ₹4,407 crore, up 29% from ₹3,409 crore.
- Net profit saw a significant jump to ₹4,016 crore, representing a 34% increase from ₹3,001 crore.
12M FY24 vs. 12M FY23 (Standalone)
- Total sanctions increased to ₹3,58,816 crore, up 34% from ₹2,68,461 crore, with notable growth in sanctions to the renewable sector.
- Disbursements surged to ₹1,61,462 crore, up 67% from ₹96,846 crore.
- Revenue from operations rose to ₹47,146 crore, marking a 20% increase from ₹39,208 crores.
- Net profit soared to ₹14,019 crore, up 27% from ₹11,055 crore.
The remarkable performance can be attributed to REC‘s focus on improving asset quality, effective resolution of stressed assets, and strategic management of finance costs. As a result, the company achieved a substantial increase in earnings per share (EPS) to ₹53.11 per share for FY24.
With sustained profit growth, the company reported that its net worth reached Rs 68,783 crore as of March 31, 2024, marking a 19 percent year-on-year increase. The company’s loan portfolio has expanded by 17 percent to Rs 5.09 trillion compared to Rs 4.35 trillion as of March 2023, representing its highest level ever. Expanding its focus beyond the pure play power sector, the NBFC now extends loans to green energy, infrastructure, and new age energy transition projects. Last year, REC entered into Memorandums of Understanding (MoUs) totaling Rs 2.85 trillion during the G20 Energy Transition Ministerial, collaborating with approximately 25 renewable energy companies to finance clean energy initiatives.
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With a reduced percentage of net credit-impaired assets and a comfortable Capital Adequacy Ratio (CRAR) of 25.82%, REC remains well-positioned to support future growth initiatives.
In line with its commitment to shareholders, REC’s Board of Directors declared a final dividend of ₹5 per equity share, bringing the total dividend for FY24 to ₹16 per equity share.