REC posts ₹4,038 crore net profit in Q2 FY25
State-run REC on Saturday reported an around 7 per cent y-o-y growth in its consolidated net profit at about ₹4,038 crore in Q2 FY25 aided by growth across verticals.
On a sequential basis, the non-banking financial company’s (NBFC) net profit rose by 17 per cent.
Its consolidated total income stood at around ₹13,706 crore in Q2 FY25, compared to ₹13,092 in Q1 FY25 and ₹11,685 crore in Q2 FY24.
Owing to growth in all the verticals, resetting of interest rates on loan assets and effective management of Finance Cost, REC is able to maintain its spreads and net interest margins (NIMs), REC said.
Its Earnings Per Share (EPS) for the period ended September 30, 2024 stood at ₹28.28 (Annualised ₹56.56) per share as against ₹25.57 (Annualised ₹51.14) per share as at September 30, 2023, it added.
The loan book i.e. Asset Under Management (AUM) has maintained its growth trajectory and has increased by 15.2 per cent on sustained basis to ₹5.46 lakh crore as against ₹4.74 lakh crore as at September 30, 2023.
The net credit-impaired assets as at September 30, 2024 have reduced to 0.88 per cent from 0.96 per cent as at September 30, 2023 with Provision Coverage Ratio of 65.12 per cent on NPA assets, as at September 30, 2024.
Aided by growth in profits, the Net Worth has grown to ₹72,893 crore as on September 30, 2024, as compared to ₹ 63,117 crore as on September 30,2023 registering an increase of 15 per cent y-o-y.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the company stands at a comfortable 25.31 per cent as at September 30, 2024.
Continuing with the tradition to reward its shareholders, REC Board of Directors declared the second interim dividend of ₹4 per equity share.