REC Q2 Results | Net profit up 6% to ₹4,006 crore, NII surges 21% to ₹4,680 crore; declares dividend
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, surged 21.4%, coming at ₹4,680.4 crore against ₹3,856.2 crore in the corresponding quarter of FY24.
The gross non-performing asset (GNPA) stood at 2.53% in the September quarter against 2.61% in the June quarter. Net NPA came at 0.88% against 0.82% quarter-on-quarter. In monetary terms, gross NPA stood at ₹13,517 crore against ₹13,810 crore quarter-on-quarter, whereas net NPA came at ₹4,775 crore against ₹3,353 crore quarter-on-quarter.
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The earnings per share (EPS) for the period ended September 30, 2024, accelerated to ₹28.28 per share (annualised ₹56.56) per share against ₹25.57 per share (annualised Rs 51.14) as of September 2023. Its net worth has grown to ₹72,893 crore as of September 30, 2024, compared to ₹
63,117 crore as of September 30, 2023, registering an increase of 15%year-on-year.
The loan book has maintained its growth trajectory and increased by 15.2% to ₹5.46 lakh crore from ₹4.74 lakh crore as of September 30, 2023. The net credit-impaired assets were reduced to 0.88% from 0.96% a year ago, with a provision coverage ratio of 65.12% on NPA assets as of September 30, 2024. Indicating ample opportunity to support future growth, its capital adequacy ratio (CRAR) stands at 25.31%.
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During the quarter, loan disbursement stood at ₹47,303 crore, of which Rs 5,946 crore was towards the renewable energy sector. The overall disbursement was 14 per cent higher than ₹41,598 crore in the September quarter of FY24.
The board of directors has declared a second interim dividend of ₹4 per equity share of ₹10 each for the financial year 2024-25. Further, the record date for the said interim dividend is Friday, November 8, 2024, and the said interim dividend shall be paid on or before November 22, 2024.
The results came after the close of the market hours. On October 25, shares of REC Ltd ended at ₹509.35, down by ₹11.85, or 2.27% on the BSE.
