New Delhi, Feb 6 (IANS) Government-owned Maharatna company REC on Thursday announced a 23 per cent jump in net profit to Rs 4,029 crore for the October-December quarter of the current financial year compared to the corresponding figure of Rs 3,269 crore for the same quarter of 2023-24.
The company’s net interest income rose 19 per cent to Rs 4,930 crore during the third quarter from Rs 4,153 crore in the same period last year.
“The Board of Directors of the company has declared the 3rd interim dividend of Rs 4.30 per equity share (on face value of Rs 10 each),” the REC said in a statement.
There was an improvement in the REC’s asset quality with net credit-impaired assets declining to 0.74 per cent during the quarter from 0.82 per cent.
The company’s revenue from operations shot up 18 per cent to Rs 14,157 crore from Rs 11,982 crore in the year-ago period.
REC disbursed loans to the tune of Rs 54,692 crore during the quarter compared to Rs 46,358 crore in the same period of the previous year, which represents an 18 per cent increase.
The company’s market capitalisation has recorded a robust 21 per cent jump to Rs 1,31,844 during the quarter from Rs 1,08,712 crore in the same period last year.
Owing to growth in all the verticals, resetting of interest rates on loan assets and effective management of finance cost, the REC is able to maintain its spreads and NIMs resulting in robust profit after tax of Rs 11,477 crore for the period ending December 31, 2024.
As a result, the Earnings Per Share (EPS) for the period ended December 31, 2024 accelerated to Rs 58.11 (annualised) per share as against Rs 50.65 per share as at December 31, 2023, according to a company statement.
The loan book i.e. Asset Under Management (AUM) has maintained its growth trajectory and has increased on a sustained basis to Rs 5.65 lakh crore as against Rs 4.97 lakh crore as at December 31, 2023.
Aided by growth in profits, the net worth has grown to Rs 76,502 crore as on December 31, 2024, as compared to Rs 64,787 crore as on December 31, 2023, registering an increase of 18 per cent year-on-year, the REC statement added.
–IANS
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