Power projects financier REC reported an 11 per cent growth in profitability for the first half of FY2025, with net profit rising to ₹74.48 billion from ₹67.34 billion in the previous fiscal year. REC’s operational revenue appreciated by 18 per cent to ₹265.94 billion compared to ₹225.52 billion in the same period last year.
Growth across verticals, resetting of interest rates on loan assets, and effective management of finance costs helped the company maintain its spreads and net interest margins, resulting in a robust half-yearly profit after tax of ₹74.48 billion. Consequently, earnings per share for the period ended September 30 accelerated to ₹28.28 (annualised ₹56.56) per share, up from ₹25.57 (annualised ₹51.14) per share for the same period last fiscal year.
The company also reported sustained growth in assets under management, which increased by 15.2 per cent to ₹5.46 trillion, up from ₹4.74 trillion in the previous fiscal year. Net credit-impaired assets were reduced to 0.88 per cent from 0.96 per cent year-over-year, with a provision coverage ratio of 65.12 per cent on non-performing assets.
Boosted by the increase in profits, REC’s net worth grew to ₹728.93 billion as of September 30, compared to ₹631.17 billion the previous year, marking a 15 per cent YoY increase. The company’s comfortable capital adequacy ratio of 25.31 per cent indicates ample opportunity to support future growth.
The REC board has declared a second interim dividend of ₹4.00 per equity share on a face value of ₹10 each.