Earnings Impact: REC jumps 9.5% to record high on strong Q4 results, soars 30.5% in 8 sessions

The PSU (public assemblage undertaking) institution posted a 33 percent year-on-year (YoY) leap successful its consolidated nett net successful the 4th nether reappraisal to ₹4,079 crore, helped by steadfast maturation successful halfway income and a proviso write-back. It has posted a nett net of ₹3,065.37 crore successful the corresponding 4th of the erstwhile fiscal (Q4FY23).

According to REC's fiscal statement, the nationalist assemblage institution wrote-back provisions worthy ₹711.9 crore successful Q4, compared to an disbursal of ₹56 crore successful Q3FY24, which aided its nett aft tax.

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Meanwhile, its gross from operations grew 25 percent YoY to ₹12,613 crore during the aforesaid play versus ₹10,123.96 crore successful the corresponding 4th past year.

Post today's surge, the banal has present skyrocketed a monolithic 336 percent from its 52-week debased of ₹127.40, deed connected May 19, 2023. The scrip has soared 273 percent successful the past 1 twelvemonth and implicit 34 percent successful 2024 YTD, giving affirmative returns successful 3 of the 4 completed months this year.

It jumped 12.5 percent successful April aft a 2 percent emergence successful March. However, it fell 11.4 percent successful February but has risen 20.86 percent successful January this year.

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REC is simply a 'Maharatna' institution nether the administrative power of the Ministry of Power, Government of India. It is registered with RBI arsenic Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).

The company's halfway nett involvement income experienced a 29 percent YoY increase, reaching ₹4,407 crore. This emergence was driven by a 67 percent YoY summation successful disbursements and a 0.31 percent enlargement successful the nett involvement borderline (NIM), which stood astatine 3.60 percent.

REC's president and managing manager (MD), V K Dewangan, expressed assurance successful the company's quality to support the nett involvement borderline supra 3.55 percent for FY25.

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The steadfast besides announced a last dividend of ₹5 per share, taxable to support of shareholders successful the ensuing Annual General Meeting (AGM). This dividend was successful summation to the interim dividend ₹11 per equity share, already declared during the fiscal twelvemonth successful 3 tranches, thereby making the full dividend for the Financial Year to ₹16 per equity stock connected look worth of ₹10 each.

For the full fiscal twelvemonth FY 24, the institution posted its highest-ever nett net astatine ₹14,019 crore, up 26.8 percent YoY connected the backmost of its improving plus prime and effectual solution of stressed assets, resetting of the lending rates and effectual absorption of concern cost. Meanwhile, the Total income of the institution accrued by 20.28 percent to ₹47,214.15 crore successful FY24 arsenic against ₹39,252.73 crore successful FY23.

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REC has stated that it aims to destruct non-performing assets (NPAs) by the extremity of FY 25, with plans to resoluteness atrocious assets totaling implicit ₹13,800 crore. To execute this, the institution has a debt-raising program of ₹1.6 lakh crore for the caller fiscal year.

The breakdown of this debt-raising program includes issuing 40 percent done home bonds, 10 percent done tax-saving bonds, implicit a 3rd done outer commercialized borrowings, and the remainder done word loans from banks. This strategical attack to indebtedness raising aims to supply the institution with the indispensable superior to negociate its plus portfolio efficaciously and execute its extremity of being NPA-free by FY 25.

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Published: 02 May 2024, 01:23 PM IST