REC posted a 34% jump in its net profit in the fourth quarter of the financial year 2023-24 at Rs 4,016 crore compared to Rs 3,001 crore in in the corresponding period a year ago.Its revenues from operations rose by 25% to Rs 12,613 crore in Q4FY24 from Rs 10,113 crore in Q4FY23.The company’s total sanctions increased by 34% to Rs 3.6 trillion in Q4FY24.
Total sanctions to the renewable sector surged over six times to Rs 1.36 trillion.REC said it posted highest ever annual net profit of Rs 14,019 in FY24.The company’s chairman and managing director Vivek Kumar Dewangan said REC would be a zero non performing assets (NPAs) company by FY2025.
The company’s loan book grew by 17% to Rs 5.09 trillion in FY24.”We are committed to increase renewable portfolio by 10 times to Rs 3 trillion. Last year , outstanding loans to renewables sector was Rs 35,000 crore. With the huge pipeline of Rs 1.5 trillion, we will achieve the target,” he said
He said the company’s assets under management grew by 17% in FY24, up from 13% in FY23.”We will grow AUM by 15-18% in next three to four years. We will reach AUM of Rs 10 trillion by 2030,” he said He said they have loan sanction target of Rs 1 trillion in infrastructure and logistics in FY25 and disbursement target of Rs 40,000 crore to the sector in FY25.Sanjay Kumar , excecutive director at REC said the company’s cost of borrowing will come down when the interest rates come down .”We expect rates to come down by at least 50 bps,”.REC’s average cost of funds came down to 7.14%.