[ad_1]
The REC Board recommended a final dividend of ₹2.60 per share.
| Photo Credit:
Markku Ulander
Power sector lender REC on Thursday said that it aims to achieve zero non-performing assets (NPAs) by end of FY26 from a commendable 0.38 per cent net NPA and 1.35 per cent gross NPA in FY25.
The State-run company was earlier targeting zero NPAs by end of FY25.
“We are now at 0.38 per cent as on March 31, 2025 and we hope to be a zero NPA company this year (FY26),” said REC Chairman & Managing Director (CMD) Jitendra Srivastava during the company’s FY25 results press conference.
The company had net NPAs of 0.96 per cent in Q2 FY24, which was brought down to 0.86 per cent at the end of FY24.
REC’s consolidated net profit rose by 5.66 per cent y-o-y and 5.74 per cent q-o-q to around ₹4,310 crore during Q4 FY25 aided by growth across verticals, resetting of interest rates on loan assets and effective management of finance cost.
The government-controlled lender’s consolidated total income was higher at around ₹15,348 crore during Q4 FY25 against ₹14,287 crore in Q3 FY25 and Rs 12,707 crore in Q4 FY24.
The company’s consolidated total expenses were higher during the March quarter at around ₹9,859 crore compared to ₹9,106 crore in Q3 FY25 and ₹7,477 crore in Q4 FY24.
The REC Board recommended a final dividend of ₹2.60 per share. The total dividend per share (including proposed final dividend) for FY25 is ₹18 a share compared to ₹16 per share in FY24.
The loan book, asset under management (AUM), has maintained its growth trajectory and has increased on a sustained basis to ₹5.66 lakh crore as on March 31, 2025 against ₹5.09 lakh crore as on March 31, 2024.
Further, the Net credit-impaired assets reduced to 0.38 per cent from 0.86 per cent post resolution of five credit impaired loan assets having aggregate amount of ₹6,171 crore during FY25.
During the Q4 FY25, two stressed assets (KSK Mahanadi Power Company and Corporate Power) of an aggregate outstanding loan amount of ₹3,393.36 crore have been resolved under Insolvency and Bankruptcy Code (lBC) with a sum of around ₹734 crore been written off with corresponding reversal of ECL of ₹611 crore.
REC has 11 projects (₹6,149 crore) under NCLT and another project with ₹1,504 crore resolution being pursued outside the National Company Law Tribunal (NCLT).
Aided by growth in profits, the net worth of REC has grown to ₹77,638 crore as on March 31, 2025, as compared to ₹68,783 crore as on March 31, 2024 registering an increase of 13 per cent y-o-y.
Indicating the ample opportunity to support the future growth, the capital adequacy ratio (CRAR) of the company stands at a comfortable 25.99 per cent as on March 31, 2025.
Published on May 8, 2025
[ad_2]
Source link
