New Delhi: REC Limited, a state-owned infrastructure finance company, reported a 20.9% increase in first-quarter profit, boosted by higher interest income on loan assets.
The consolidated net profit of the non-banking financial company increased to ₹29.68 billion in the three months ended June 30, 2023, from ₹24.54 billion the previous year.
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The power ministry public sector undertaking (PSU), which finances state electricity boards, state utilities, and all segments of private power infrastructure, reported a 16.7% increase in revenue from operations to ₹110.88 billion.
Interest income on loan assets increased nearly 13% to ₹104.65 billion, accounting for 94.4% of revenue from operations.
RECL chairman and managing director Vivek K Devangan stated in the Q1 report released on Wednesday that the company’s total operating revenue increased by 16.7% to ₹110.88 billion. He stated that net NPAs have decreased to 0.91% of the loan portfolio and gross NPAs have decreased to 4.44%.
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In the last six quarters, the company has not added any new NPA. “We expect to be a net zero NPA company by 2025, with renewable energy accounting for 30% of the company’s loan portfolio by 2030,” he said.
REC recently signed MoUs worth ₹2.85 trillion with nearly 25 renewable energy companies to lend for clean energy projects at the G20 Energy Transition Ministerial.
Furthermore, the company proposed raising funds through the private placement of unsecured or secured non-convertible bonds or debentures in one or more tranches of up to ₹1.05 trillion, subject to shareholder approval.
