REC reports 23% increase in net profit, declares interim dividend of Rs 4.30 per share

REC has announced a 23 percent year-on-year rise in net profit for the third quarter of FY25, reaching Rs 4,029 crore.

The company’s board of directors has also declared a third interim dividend of Rs 4.30 per equity share.

For the quarter ended December 31, 2024, REC’s revenue from operations grew 18 per cent to Rs 14,157 crore as against Rs 11,982 crore in the third quarter of FY24.

Net interest income grew 19 percent to Rs 4,930 crore, while net loan-impaired assets declined from 0.82 percent to 0.74 percent. The company’s disbursements witnessed an 18 percent rise, reaching Rs 54,692 crore.

In the first nine months of FY25, REC reported a 15 percent rise in net profit to Rs 11,477 crore. Total income grew 18 percent to Rs 40,805 crore, while net interest income grew 24 percent to Rs 14,191 crore.

Disbursements grew 19 percent to Rs 1,45,647 crore, with renewable energy disbursements growing a sharp 79 percent to Rs 17,612 crore.

The company’s assets under management (AUM) grew to Rs 5.65 lakh crore from Rs 4.97 lakh crore a year ago. REC’s market capitalisation grew 21 percent to Rs 1,31,844 crore, while its net worth grew to Rs 76,502 crore, marking an 18 percent year-on-year growth.

The company maintained strong financial stability with a capital adequacy ratio of 25.33 percent. This stellar performance was made possible due to growth across all segments, effective cost management and interest rate reset on loan assets.

With a return on net assets of 21.07 percent, REC’s earnings per share (EPS) increased to Rs 58.11 (annualised) as against Rs 50.65 in the previous year.

Reaffirming its commitment to reward shareholders, REC’s latest dividend declaration underlines its strong financial position and sustained profitability.