REC Limited, a government-owned infrastructure finance company, posted a net profit of ₹37.73 billion (~$453.2 million) in the second quarter (Q2) of the financial year (FY) 2024, an increase of 38% year-over-year (YoY) from ₹27.28 billion (~$327.7 million).

The numbers represent the company’s all-time highest first-quarter profit, driven by improvements in asset quality, increased lending rates, and cost-effective management.

The company’s revenue from operations in the quarter stood at ₹112.13 billion (~$1.34 billion), a rise of 18%, compared to ₹95.34 billion (~$1.14 billion) during the same period last year.

REC offers long-term loans and various financial products for the power infrastructure sector, including generation, transmission, distribution, renewable energy, and emerging technologies such as electric vehicles, battery storage, green hydrogen, and more.

The company approved loans to the tune of ₹1.04 trillion (~$12.5 billion) in the June to September period, up 23% from ₹848.89 billion (~$10.2 billion) in Q2 FY23. The renewable sector accounted for 24% of the total approved amount.

REC disbursed loans of ₹415.98 billion (~$5 billion), up 133% YoY compared to ₹178.27 billion (~$2.1 billion).

Maintaining its growth trajectory, REC’s loan book increased by 20% YoY to ₹4.74 trillion (~$57 billion) as of September 30, 2023, against ₹3.94 trillion (~$47.34 billion).

Signifying improving asset quality, the net credit-impaired assets reduced to 0.96% with a provision coverage ratio of 69.37% on non-performing assets as of September 30, 2023.

In September, REC Limited approved a funding of ₹60.75 billion (~$730.8 million) to Greenko to develop a 1,440 MW standalone pumped storage project. It has also approved debt funding of over ₹30.81 billion (~$370.6 million) to Serentica Renewables‘ 560 MW peak greenfield solar-wind hybrid project at Gadag, Karnataka.

Earlier, REC raised $1.25 billion in August and September 2023 from a consortium of six banks through a Foreign Currency Term Loan Agreement. The company raised $1.15 billion in two tranches from a consortium of six banks.

In May this year, REC listed its recently issued green bonds, which raised $750 million under its global medium-term $7 billion program at the GIFT IFSC Stock Exchanges in Gandhinagar.