(THE NEWSMAN OF INDIA.COM)
Delhi, February 06, 2025* – REC Limited, a leading public sector financial services company, has declared robust financial results for the third quarter and nine months ended December 31, 2024. The company’s board approved the limited reviewed standalone and consolidated financial results, showcasing impressive growth across multiple key performance indicators.

Financial Highlights: Q3 FY25 vs Q3 FY24 (Standalone)

REC Limited achieved a remarkable **23% increase in net profit**, rising to ₹4,029 crore in Q3 FY25, compared to ₹3,269 crore in the same period of the previous year. This growth was propelled by the company’s consistent performance across its core operations.

– Net Interest Income (NII) increased by 19% to ₹4,930 crore, from ₹4,153 crore in Q3 FY24.
– Revenue from Operations saw an 18% growth, reaching ₹14,157 crore, up from ₹11,982 crore.
– Disbursements** also rose by 18%, amounting to ₹54,692 crore, compared to ₹46,358 crore a year earlier.
– Net Credit-Impaired Assets improved, falling to 0.74%, a significant reduction from the previous year’s 0.82%.
– The company also managed to reduce its average cost of funds by 10 basis points to 7.18%, while achieving an improvement in Net Interest Margin (NIM), which increased by 5 basis points to 3.66%.

Strong Performance in the Nine-Month Period: 9M FY25 vs 9M FY24 (Standalone)

The company’s performance over the first nine months of FY25 continued to reflect its growth trajectory.

– Net Profit surged by 15%, reaching ₹11,477 crore, compared to ₹10,003 crore during the same period last year.
– Net Interest Income rose by 24%, totaling ₹14,191 crore, up from ₹11,422 crore.
– Revenue from Operations increased by 18%, reaching ₹40,752 crore, compared to ₹34,533 crore in 9M FY24.
– Disbursements jumped by 19% to ₹1,45,647 cror , with a notable 79% increase in disbursements to renewables, totaling ₹17,612 crore, up from ₹9,858 crore.
– The company’s Return on Net Worth stood strong at 21.07%.
– Market Capitalization** grew by **21%, reaching ₹1,31,844 crore, compared to ₹1,08,712 crore at the end of December 2023.

Strengthened Financial Position

Despite the challenges in the financial landscape, REC Limited has showcased remarkable resilience. The company’s loan book (Assets Under Management – AUM) grew to ₹5.65 lakh crore, an increase from ₹4.97 lakh crore as of December 31, 2023. This growth reflects the company’s robust lending capacity and its continued ability to support projects across various sectors.

In addition, the Net Worth of REC rose to ₹76,502 crore, compared to ₹64,787 crore as of December 31, 2023, reflecting an 18% year-on-year growth. The **Capital Adequacy Ratio (CRAR)** remains strong at 25.33%, ensuring that the company is well-positioned to support future growth.

Interim Dividend Declared

In line with its commitment to delivering value to shareholders, REC Limited’s Board of Directors has declared the 3rd interim dividend for FY25 at ₹4.30 per equity share (on face value of ₹10 per share). This dividend reflects the company’s robust profitability and its ongoing focus on providing consistent returns to its investors.

Outlook

With a strong financial position, strategic growth in disbursements, and effective management of cost and spreads, REC Limited is well-placed to continue its growth trajectory. The company’s focus on expanding its renewable energy disbursements and maintaining its loan book growth is expected to sustain its profitability and market leadership in the coming quarters.

As of the latest reports, REC Limited remains a key player in India’s financial sector, well-equipped to drive economic growth through continued support to critical infrastructure and renewable energy projects.