Operational and Financial Highlights: Q1 FY25 vs. Q1 FY24 (Standalone)
- Total Sanctions: ₹1,12,791 crore (up 24% from ₹90,797 crore), with sanctions for the renewable sector rising 59% to ₹39,655 crore from ₹24,985 crore.
- Disbursements: ₹43,652 crore (up 28% from ₹34,133 crore), with a significant increase in renewables disbursements by 249%.
- Revenue from Operations: ₹13,023 crore (up 19% from ₹10,976 crore).
- Total Income: ₹13,037 crore (up 19% from ₹10,981 crore).
- Net Interest Income: ₹4,713 crore (up 30% from ₹3,612 crore).
- Net Profit: ₹3,442 crore (up 16% from ₹2,961 crore).
- Yield: 9.99% (up 17 basis points from 9.82%).
- Average Cost of Funds: 7.05% (down 18 basis points from 7.23%).
- Spread: 2.94% (up 35 basis points from 2.59%).
- Net Interest Margin: 3.64% (up 36 basis points from 3.28%).
- Return on Net Worth: 19.51%.
- Market Capitalization: ₹1,38,348 crore (up 219% from ₹43,356 crore).
Due to growth across all areas, adjustments in loan asset interest rates, and effective financial cost management, REC has successfully maintained its spreads and net interest margins, leading to a strong quarterly profit after tax of ₹3,442 crore. Consequently, Earnings Per Share (EPS) for the quarter ending June 30, 2024, rose 16% to ₹13.07 per share from ₹11.24 per share a year earlier.
The loan book continued its growth trend, increasing by 17% to ₹5.30 lakh crore from ₹4.54 lakh crore as of June 30, 2023. Net credit-impaired assets decreased to 0.82% from 0.97%, with a Provision Coverage Ratio of 68.48% on NPA assets as of June 30, 2024.
Supported by profit growth, Net Worth rose to ₹72,351 crore as of June 30, 2024, reflecting a 19% year-over-year increase.
With ample opportunity for future growth, the Company’s Capital Adequacy Ratio (CRAR) stands at a healthy 26.77% as of June 30, 2024.
Continuing its tradition of rewarding shareholders, the Board has declared an interim dividend of ₹3.50 per equity share (with a face value of ₹10 each).
