REC jumps 5% on upbeat Q1 operational performance, company saw 24% YoY growth in loans sanctioned

REC’s loan disbursements for the first quarter of FY25 were up 27.89% YoY to ₹43,652 crore, of which, renewable energy sanctions surged 248.83% YoY to ₹5,351 crore.

Shares of REC jumped nearly 5% on Monday.

In May, REC announced that its wholly-owned subsidiary, REC Power Development & Consultancy (RECPDC) has incorporated two wholly-owned subsidiaries namely Bikaner A Power Transmission and Bikaner B Power Transmission. The two companies have been incorporated to set up a transmission system for the evacuation of power from Rajasthan REZ Phase IV (Part-3: 6 GW), Bikaner complex.

For the fourth quarter of the financial year 2024, REC’s net profit rose 33.07% YoY to ₹4,079 crore. The company’s total consolidated income grew by 23.91% YoY to ₹12,706.66 crore. REC’s profit before tax for the quarter saw an uptick of 34.05% YoY to ₹5,229.48 crore.

For the financial year ending on March 31, 2024, the company’s net profit was up by 26.67% YoY to ₹14,145 crore. The company recorded a 20.37% YoY growth in its total consolidated income to ₹47,571 crore. The company’s profit before tax in FY24 came in higher by 29.22% YoY at ₹17,960 crore.

The board of directors of REC recommended a dividend of ₹5 per share. In addition, the company had also declared an interim dividend of ₹11 per share. The total dividend in FY24 stood at ₹16 per share.

Shares of the company have risen by nearly 30% since the beginning of the year. The stock has gained over 231% in the last one year.