REC shares surge over 8%, hit 52-week high post stellar Q4 results

Shares of REC Limited hit their 52-week-high on Thursday after the company reported robust financial results for the fourth quarter of the fiscal year 2023-24 (Q4 FY24).

At 12:01 pm, the stock was trading at ₹550, up 8.4%, on the NSE. Intraday, it reached a high of ₹555.7. On the BSE, the scrip gained 8.2% to trade at ₹548.8.

REC reports strong Q4 results

Its revenue from operations climbed 25% to ₹12,613 crore during the Q4 FY24 compared to ₹10,113 crore in the year-ago period.

The company's core net interest income saw a substantial increase of 29% to ₹4,407 crore in the March quarter, driven by a 67% rise in disbursements and a marginal 0.31% expansion in the net interest margin, which reached 3.60%.

VK Dewangan, chairman and managing director of REC, said the company is confident of maintaining the net interest margin of over 3.55% for FY25.

The chairman said that the company would be very choosy about accepting proposals from outside of the power sector, adding that it would go for such proposals only if they were good projects.

Moreover, Dewangan said the firm is aiming to increase the fund allocation to the private sector to 30% from 10% at present. He said increased play in the renewable space, where a bulk of the borrowing requirements come from the private sector, will help achieve the aim by the end of FY30.

Renewable energy accounts for only 10% of the overall ₹5.09 lakh crore of assets under management at present, and the same will touch 30% by the end of FY30, he said.

For the quarter under review, the company had a provision write-back of ₹713 crore, which helped the bottom line.

Dewangan said that the company has sanctioned money for 10,000 electric buses till now and added that it is targeting to take this figure to 50,000 e-buses by funding both original equipment makers and operators to get buses to ply in metros.