REC (RECLTD) Q2 24/25 earnings summary

Executive summary

• Achieved record half-yearly profit of INR 7,448 crore for H1 FY25, with total income up 18% year-over-year to INR 26,633 crore and loan book growing 15% YoY to INR 5.46 lakh crore.

• Net-worth increased 15% YoY to INR 72,893 crore, with asset quality improving as net credit impaired assets fell to 0.88%.

• Declared total interim dividend of INR 7.5 per share for H1 FY25, including a second interim dividend of INR 4 per share.

• Board and Audit Committee reviewed and approved unaudited financial results for H1 FY25.

• Incorporated two new project-specific SPVs and made key managerial appointments.

Financial highlights

• Net interest income rose 25% YoY to INR 9,723 crore; net profit for H1 FY25 was INR 7,448 crore, up from INR 6,734 crore YoY.

• Net interest margin for H1 FY25 stood at 3.64%, with guidance to sustain above 3.6%.

• Book value per share at INR 276.82 as of September 2024; annualized EPS at INR 56.56.

• Capital adequacy ratio at 25.31%, with Tier-1 at 22.87%.

• Gross loan assets stood at INR 5,46,116.96 crore as of September 30, 2024.

Outlook and guidance

• Asset under management projected to grow at 15-20% annually, targeting to double by 2029-2030.

• Disbursements for FY25 expected to reach INR 1.9 lakh crore.

• Focus on diversified asset base, including expansion into infrastructure and logistics sectors.

• Continued emphasis on asset quality and provisioning coverage.