New Delhi [India], July 28 (ANI): REC Limited, a ‘Maharatna’ company under the administrative control of the Ministry of Power, has applied to open a subsidiary in Gujarat’s Gift City, which will make way for it to start financing offshore projects.
Chairman and Managing Director of REC Limited, Vivek Kumar Dewangan, talking to ANI soon after the company released its Q1 earnings, said they would start financing offshore projects “as soon as possible” and hinted it is most likely in this current financial year.
“Right now, we have submitted our application to open our subsidiary in GIFT City in Gandhinagar. Once this approval comes, then we will think over it,” said the CMD.
The company’s Board of Directors on Saturday approved the financial results for the quarter ended June 2024.
The company’s revenue from operations was at Rs 13,023 crore, versus Rs 10,976 crore reported in the same quarter last year, a yearly increase of 19 per cent.
Its net profit rose 16 per cent to Rs 3,442 crore from Rs 2,961 crore reported in the corresponding period. This was its highest first-quarter profit.
“We hope to maintain this growth trajectory of 15-17 per cent as reflected in Q1. Our loan book has also increased by 17 per cent, our profit has increased by 16 per cent. We hope to maintain this growth trajectory,” the CMD said.
The state-owned company’s market capitalization stood at Rs 1,38,348 crore at the end of the June quarter, versus Rs 43,356 crore, in the corresponding quarter last year, with a whopping increase of 219 per cent. REC’s share price has risen by 221 per cent over the past 12 months, with Friday’s closing of Rs 623.55.
Market capitalization or market cap is the total value of a company’s stock, derived at by multiplying the stock price by the number of its outstanding shares.
The state-owned company’s loan book has maintained its growth trajectory and has increased by 17 per cent on a sustained basis to Rs 5.30 lakh crore as against Rs 4.54 lakh crore as on June 2023.
The company is committed to increasing its loan book to Rs 10 lakh crore by 2030.
“We have made a comprehensive business strategy to double our loan book…We expect that we will be able to double our loan book to about Rs 10 lakh crore by the end of 2030. Out of this 10 lakh crore of loan book that we are targeting by the year 2030, about 30 per cent will come from the renewable energy portfolio. Right now, my renewable energy portfolio is about 7 to 8 per cent of my loan book, but it will increase substantially to about 30 per cent. Then conventional generation and transmission distribution will constitute about 60 per cent of my loan book. The remaining 10 per cent will come from non-power infrastructure and logistics,” CMD Dewangan told ANI.
The net credit-impaired assets as of June 2024 have reduced to 0.82 per cent from 0.97 per cent in June 2023. Further, the company’s CMD as part of his presentation said they were aiming for zero net NPA by the end of this financial year.
The company officials in its post-earnings presentation said no new NPA was added in the April-June 2024-25 quarter.
REC, granted Maharatna status in 2022, finances the entire range of power infrastructure sector, comprising generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage, pump storage projects, green hydrogen, and green ammonia projects.
More recently, the 1969 established company REC, also diversified into the non-power infrastructure sector comprising roads and expressways, metro rail, airports, IT communication, social and commercial infrastructure (educational institutions, hospitals), and refineries, among others. (ANI)
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