REC Ltd Q1: Net Profit Soars 16 Per Cent To Rs 3,442 Crore, Firm Announces Dividend Of Rs 3.50 Per Share

The firm informed that its net interest margin for the reporting quarter improved by 36 basis points to 3.64 per cent, while it clocked a margin of 3.28 per cent in the June quarter last year

The earnings per share (EPS) of the firm grew by 16 per cent to Rs 13.07 per share for the period ended June 30, 2024, against Rs 11.24 per share clocked at the end of June 30, 2023.

Source : REC Ltd

REC Ltd reported a 16 per cent jump in its standalone net profit after tax on a year-on-year (YoY) basis in its first quarter (Q1) earnings on Saturday. The firm clocked a net profit of Rs 3,442 crore for the April-June quarter in the 2024-25 financial year against a net profit of Rs 2,961 crore in the corresponding quarter of the previous 2023-24 fiscal year.

The revenue from operations of the company touched Rs 13,023 crore in the quarter ended June 30, 2024, up by 10 per cent from Rs 10,976 crore logged in the same period a year earlier. 

The company, a 'Maharatna', comes directly under the administrative control of the Ministry of Power, Government of India. It is registered with the Reserve Bank of India (RBI) as a non-banking finance company (NBFC), public financial institution (PFI), and infrastructure financing company (IFC). 

The firm informed that its net interest margin for the reporting quarter improved by 36 basis points to 3.64 per cent, while it clocked a margin of 3.28 per cent in the June quarter in the preceding fiscal year.

"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 NIMs resulting in robust quarterly profit after tax of Rs 3,442 crore," the firm noted.

The Net Interest Income (NII) of the company increased by 30 per cent from Rs 3,612 crore in Q1FY24 to Rs 4,713 crore in Q1FY25. NII is a reflector of interest earned by the bank after measuring the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors. 

The company in its official filing announced an interim dividend of Rs 3.50 per equity share as a reward for its shareholders.

The earnings per share (EPS) of the firm grew by 16 per cent to Rs 13.07 per share for the period ended June 30, 2024, against Rs 11.24 per share clocked at the end of June 30, 2023.