REC (RECLTD) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw 17% year-over-year AUM/loan book growth to INR 529,739 crore (₹5.30 lakh crore), with net profit up 16% to INR 3,442 crore (₹3,442 crore), and net interest income rising 30% to INR 4,713 crore.

• Total income for Q1 FY25 was INR 13,037 crore, up 19% year-over-year, and net-worth improved 19% to INR 72,351 crore.

• Asset quality improved, with net NPA/credit impaired assets at 0.82% versus 0.97% a year ago.

• Interim dividend of ₹3.50 per share declared for Q1 FY25.

• The wholly owned subsidiary Khavda II-D Transmission Limited was struck off and ceased to be a subsidiary.

Financial highlights

• Interest income on loan assets rose 20% year-over-year to INR 12,514 crore, with total comprehensive income at ₹3,525 crore, up 12% year-over-year.

• Yield on loan assets improved to 9.99% from 9.82% year-over-year, and cost of funds decreased to 7.05% from 7.23%.

• Net interest margin rose to 3.64% from 3.28% year-over-year.

• Return on net worth stood at 19.51% for Q1 FY25.

• Basic and diluted EPS (standalone) for Q1 FY25 was ₹13.07, up from ₹11.24 in Q1 FY24.

Outlook and guidance

• Management expects to maintain or exceed 17% AUM growth, aiming for 15%-20% annually, with a focus on renewables and infrastructure.

• Disbursements for FY25 are expected to surpass INR 190,000 crore, potentially reaching INR 200,000 crore, with 40% from transmission/distribution and 20% from renewables.

• Renewable energy portfolio is projected to grow from 8% to 30% of AUM by 2030.

• No material deviation in utilization of funds raised; all proceeds from recent NCD issues fully utilized as per objectives.

• No defaults in debt servicing; all obligations met on time.