New Delhi: REC Ltd., 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 rupees in the three months ended June 30, 2023, from 24.54 billion rupees the previous year.
The Power Ministry 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 rupees.
Interest income on loan assets increased nearly 13% to 104.65 billion rupees, accounting for 94.4% of revenue from operations.
RECL CMD 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 rupees. He stated that net NPAs have decreased to 0.91 percent of the loan portfolio and gross NPAs have decreased to 4.44 percent.
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 Rs 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 rupees, subject to shareholder approval.