New Delhi, April 30 (SocialNews.XYZ) Leading government-owned financial company REC on Tuesday reported a 34 per cent increase in net profit at Rs 4,016 crore for the January-March quarter of 2023-24 compared to the corresponding figure of Rs 3,001 crore for the same period in the previous year.
Revenue from operations of the company went up 25 per cent to Rs 12,613 crores during the quarter from Rs 10,113 crores in the same period of the previous year. The net interest income of NBFC increased by 29 per cent to 4,407 crore.
REC has declared a final dividend of Rs 5 per equity share and the total dividend for FY 2023-24 now works out to Rs 16 per equity share.
"Owing to the improving asset quality and effective resolution of stressed assets, and effective management of finance cost, REC has been able to record its highest ever annual profit after tax of Rs 14,019 crores," the company said in a statement.
As a result, the Earnings Per Share (EPS) for the year ended on March 31, 2024, shot up by 27 per cent to Rs 53.11 per share as against Rs 41.85 per share as at March 31, 2023, according to the statement.
REC said that its net worth has grown to Rs 68,783 crores as on March 31, 2024, registering an increase of 19 per cent year-on-year on the back of rising profits.
The loan book has maintained its growth trajectory and has increased by 17 per cent to Rs 5.09 lakh crores as against Rs 4.35 lakh crores as at March 31, 2023.
Signifying improving asset quality, the net credit-impaired assets as on March 31, 2024, have reduced to 0.86 per cent from 1.01 per cent as on March 31, 2023, with provision coverage ratio of 68.45 per cent on NPA assets, as on March 31, 2024.
The total loans sanctioned during 2023-24 increased by 34 per cent to 3,58,816 crores from Rs 2,68,461 crores in the same period of the previous year.
REC's sanctions to the renewable energy sector increased by a whopping 533 per cent to Rs 1,36,516 crores from Rs 21,554 crores.
Source: IANS
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