REC Ltd shares surges by 4.8% amid Q1 results, net profit up by 34%

 State-owned REC Ltd has continued its growth trajectory and posted yet another quarter with strong operational performance and recorded loan sanctions of Rs 12,747 crore and loan disbursements of Rs 43 652 crore during the first quarter ended June 30, 2024 of financial year 2024-25, which translates into significant growth of 24.17% and 27.89%, respectively, over the corresponding quarter of the financial year 2023-24.

The state-run power financier said that its loan growth remained very strong, powered by renewables, which grew around 250% during the first quarter of FY25, the company said in a regulatory filing.

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The loan growth for the next 3-4 years is expected to rise at an average rate (CAGR) of 18%.

For the January to March period, REC's net profit increased by 34% to Rs 4,016.3 crore, while net interest income rose by 25% to Rs 4,273 crore. REC's net profit was also boosted by an impairment credit of Rs 712 crore.

REC had declared a final dividend of Rs 5 along with its March quarter results, which were declared on June 30. That was the highest dividend payout by the company since November 2022, when it announced a dividend of Rs 5 per share.

The company had fixed June 28 as the record date for the final dividend it announced.

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