REC’s Q4 net up 33% at ₹4,079 cr on improving asset quality
State-run REC on Tuesday reported a consolidated net profit of ₹4,079 crore in Q4 FY24, which is higher by 33 per cent year-onyear (y-o-y) and by 23 per cent quarter-on-quarter (q-o-q) due to improving asset quality, resetting of lending rates and eective management of finance costs. Its total income rose to ₹12,707 crore in Q4 FY24 compared to ₹12,072 crore in Q3 FY24 and ₹10,255 crore in Q4 FY23.
Its board of directors recommended a final dividend of around ₹5 per equity share for FY24, subject to approval of shareholders. The total dividend for the financial year is ₹16 a share.
The company said on a standalone basis, REC’s yields were 10.03 per cent in Q4 FY24, with an average cost of funds at 7.14 per cent. The net interest margin and return on net worth also showed improvement.
The company’s capital adequacy ratio stood at 25.82 per cent. The net worth grew to ₹68,783 crore, a 19 per cent increase y-o-y. For FY24, REC reported a consolidated net profit of ₹14,146 crore and consolidated total income of ₹47,571 crore.
The loan book has maintained its growth trajectory and has increased by 17 per cent to ₹5.09lakh crore as of March 31, 2024 from ₹4.35-lakh crore as of March 31, 2023. Signifying improving asset quality, the net credit-impaired assets as of March 2024 have reduced to 0.86 per cent from 1.01 per cent as of March 2023 with provision coverage ratio of 68.45 per cent on NPA assets, as of March 31, 2024.