REC registers highest ever annual profit of ₹11,055 Crore and Qr4 profit at 3,001 Crores

Gurugram: The Board of Directors of REC Limited, announced the audited standalone and consolidated financial results for the quarter and year ended 31st March 2023 on Thursday. The financial results were announced by the company CMD Mr. Vivek Kumar Dewangan, IAS to media in Delhi.

Riding on the improved asset quality and resolution of stressed assets, REC recorded highest ever quarterly and yearly profit at ₹3,001 crores and 11,055 crores respectively. As a result, the Earnings Per Share for the year ended 31st March 2023 stands at ₹41.86 per share as against ₹38.02 per share as of 31st March 2022. The Return on Net-Worth during the year was 20.23% according to the company.

The Net Worth has grown to ₹57,680 crores as on 31st March 2023, an increase of 13% YoY. The loan book has

maintained its growth trajectory and has increased by 13% to ₹4.35 lakh crore as against ₹3.85 lakh crores as on 31st March 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 1.01% with Provision Coverage Ratio of 70.64% on NPA assets, as on 31st March 2023. During the year 2022-23 no new NPAs were added.

The CAR of REC stands at a comfortable 25.78% as on 31st March 2023, implying ample opportunity to support future growth.

The Company’s foray into the Non-Power Infrastructure sector aided its growth and development with sanctions of ₹85,735 crores coming from the infrastructure and logistics segment. In line with the Government of India’s focus, the company continues to grow its Renewable business with sanctions of ₹21,371 crores in this segment.

Government of India has set an ambitious target of installation of 500 GW of renewable energy capacity by 2030. REC, being a key player in financing of Energy sector Projects, has taken various initiatives towards accelerating the pace of implementation of renewable energy Projects in India and thereby helping the country achieve its target of installation of 500 GW of RE capacity by 2030.

In addition to the conventional RE Projects like solar and wind projects, REC has ventured into financing of Hybrid projects, E-Vehicle Projects, Pumped Storage Projects, manufacturing of Solar modules etc. Financing opportunities for sunrise sectors like Green Hydrogen, Green Ammonia, as well as round the clock (RTC) power projects involving bundling of renewable projects with thermal power and many others including ethanol manufacturing projects are being explored.

REC’s sanction in RE space has grown from ₹7,034 crore in FY 2017-18 to ₹21,317 crore in 2022-23 and REC’s Loan Book in RE space has grown from ₹7,506 crore in FY 2017-18 to ₹29,073 crore in 2022-23. With the said measures among many others, REC is poised to expand its Loan Book under its Renewable Energy Portfolio to ₹2.4 lakh crore by FY 2030. In a short span of time, REC has set a Renewable Energy sanction target of ₹75,000 crore for the ongoing Financial Year i.e. FY 2023-24, in order to achieve its loan book target by 2030.

The Late Payment Surcharge (LPS) scheme was launched in June 2022. At the time of its launch, the overall outstanding dues of state utilities were to the tune of ₹1.39 lakh crores. Since then, as a rule, all the states have adopted the scheme and as on date the total outstanding dues now stand at ₹80,000 crore. In less than a year since its launch, the total outstanding dues have been reduced by 42%. This initiative has made the power sector a lucrative investment opportunity and will further contribute to its overall sustenance and growth.