REC Limited has informed the Exchange about Transcript
RECLTD · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
REC Limited reported its highest ever quarterly net profit of INR 4,451 crores, up 29% year-on-year, on the back of record quarterly disbursements of INR 59,508 crores (up 36% YoY). Total income rose 13% to INR 14,734 crores and net interest income grew 17% to INR 5,247 crores, with the loan book reaching INR 5.85 lakh crores. Asset quality improved sharply with gross NPA at 1.05% and net NPA at 0.24%, and management reiterated its target of becoming a net-zero NPA company by FY26 end. Net interest margin expanded to 3.74% from 3.64% last year, and management guided loan book growth of around 12% for the year. The Board declared a first interim dividend of INR 4.60 per share, and management indicated potential further provision reversals of INR 700-800 crores during the year as remaining stressed assets are resolved.
Strong all-round performance with record profits, improving asset quality, expanding margins, and healthy capital adequacy (23.98%) is positive for shareholders. Continued dividend payouts and potential provision reversals provide additional earnings support, though high loan prepayments (INR 15,000 crores in Q1) may keep a lid on growth above the guided 12%.