Maharatna PSU REC Ltd reported a 13.5% increase in its consolidated net profit, reaching Rs 3,308.42 crore for the quarter ending December 2023, driven by higher revenues compared to Rs 2,915.33 crore in the same quarter of 2022. The total income rose to Rs 12,071.54 crore from Rs 9,795.47 crore YoY.
Due to improving asset quality, increased lending rates, and effective financing cost management, REC achieved its highest-ever 9-month profit of Rs 10,003 crore. The annualized earning per share (EPS) as of December 31, 2023, rose to Rs 50.65 per share compared to Rs 40.79 per share at the same time in 2022.
The Net Worth increased to Rs 64,787 crore as of December 31, 2023, marking an 18% YoY growth. The loan book showed a 21% increase to Rs 4.97 lakh crore from Rs 4.11 crore as of December 31, 2022. Notably, Net Credit-impaired assets reduced to 0.82%, and the Provision Coverage Ratio reached 70.41% on NPA assets as of December 31, 2023.
The Capital Adequacy Ratio (CRAR) stands at a comfortable 28.21% as of December 31, 2023. Additionally, the board approved the incorporation of a project-specific special purpose vehicle as a wholly-owned subsidiary of REC Power Development & Consultancy Limited for the Eastern Region Expansion Scheme-XXXIX project. It also approved the sale and transfer of the entire shareholding of six subsidiaries held by REC Power Development and Consultancy Limited to successful bidders selected through a tariff-based competitive bidding process.
