REC (RECLTD) Q3 24/25 earnings summary

Executive summary

• Achieved record 9-month profit of ₹11,477 crore, up 15% year-over-year, with total income rising 18% to ₹40,805 crore and net interest income up 24% to ₹14,191 crore.

• Loan assets under management grew 14% year-over-year to ₹5.66 lakh crore, with significant growth in renewable energy and non-power infrastructure.

• Asset quality improved, with net NPA/credit-impaired assets at 0.74% and gross NPA at 1.95%.

• REC maintains Maharatna status, providing operational and financial autonomy, and is a key player in power and infrastructure sectors.

• Third interim dividend of ₹4.30 per share declared, with total interim dividend for FY25 at ₹11.80 per share.

Financial highlights

• Total income for nine months was ₹40,805 crore, up 18% year-over-year; net interest income rose 24% to ₹14,191 crore.

• Q3 standalone net profit was ₹4,029 crore, up 23% year-over-year; consolidated net profit for the quarter was ₹4,076.35 crore.

• Outstanding loan book stood at ₹5,65,621 crore as of December 2024, up 14% year-over-year.

• Renewables loan book increased 58% year-over-year to ₹52,394 crore.

• Basic and diluted EPS (standalone) for the quarter was ₹15.30, up from ₹12.42 year-over-year.

Outlook and guidance

• Loan asset growth targeted at 15%-17% annually, aiming for ₹10 lakh crore AUM by 2030.

• NIMs expected to be maintained above 3.65%-3.7% going forward.

• Continued focus on renewable energy, infrastructure, and expanding private sector lending share to 30% by 2030.

• Disbursements in RDSS and smart metering expected to scale up in coming quarters.

• No deviation in the use of funds raised through debt securities; all proceeds fully utilized as per objectives.