REC March qtr net profit zooms 31% YoY to Rs 3,001 crore

REC Limited, amongst the top financiers of power projects in India, reported its highest ever quarterly profit of Rs 3001 crore for the quarter ending 31 March on Wednesday. Net profits rose 31% compared to the corresponding quarter in the previous financial year, according to a company release.

The company reported Rs. 9903 core of interest income from loans disbursed by it in the quarter. This was against Rs. 9235 crore in the corresponding quarter of the previous financial year. Interest income grew by 7%.

It recorded annual profits of Rs 11,055 crore. Interest income for the financial year 2022-23 was Rs. 38,360 crore.

The company, earlier known as Rural Electrification Corporation, disbursed loans worth Rs. 96,846 crore in the financial year 2022-23. This was significantly larger than its disbursements of Rs. 64,150 crore in the previous financial year.

The company attributed the improved financial performance improving asset quality and resolution of stressed assets.

Typically, financiers take higher provisions on loans which are classified as non-performing. Several loan accounts of REC Limited have undergone debt resolution under the insolvency and bankruptcy code process. This could have bolstered the company’s bottom line.

REC Limited is majority owned by the state-owned Power Finance Corporation


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