Public infrastructure finance company REC Limited recorded a total income of ₹127.07 billion (~$1.52 billion) for the fourth quarter (Q4) of the financial year (FY) 2023-24, a 24% year-over-year (YoY) increase.

REC’s net profit for the quarter rose 33% YoY to ₹40.79 billion (~$488.86 million).

REC loan approvals for the quarter totaled ₹328.75 billion (~$3.94 billion), a 57% YoY decrease. The disbursements grew 34% YoY to ₹393.7 billion (~$4.71 billion).

Renewables, including large hydropower, accounted for 35% of the total loan approvals and 16% of the total disbursements during the quarter.

The loan portfolio increased 17% to ₹5.09 trillion (~$61 billion) as of March 31, 2024. Showing better asset quality, the proportion of net credit-impaired assets decreased from 1.01% to 0.86% as of March 31, 2024, with a provision coverage ratio of 68.45% for non-performing assets on the same date.

Full-year 2024

REC recorded a total income of ₹475.71 billion (~$5.7 billion) in FY 2024, a 20% YoY increase.

The company’s net profit for FY 2024 surged by 27% YoY to ₹141.45 billion (~$1.69 billion).

A significant portion of the total approved loans, amounting to ₹1.37 trillion (~$16.41 billion), accounted for the renewable energy sector, showcasing a substantial YoY growth of 538.79%.

Renewable energy loan approvals sanctions encompass various sectors. The solar segment received ₹20.9 billion (~$250.47 million), module manufacturing ₹21.56 billion (~$258.42 million), green hydrogen ₹7.99 billion (~$95.76 million), E-mobility ₹7.21 billion (~$86.42 million), wind turbine manufacturing ₹3.19 billion (~$38.23 million), wind ₹3.45 billion (~$41.35 million), and hybrid projects ₹10.09 billion (~$120.94 million).

The company’s net worth witnessed a 19% YoY growth to ₹ 687.83 billion (~$8.24 billion) at the end of March 2024.

In an interview with Mercom India, V K Singh, Director (Projects) at REC Limited, spoke about the company’s plans to increase its renewable energy loan portfolio from 6% to 30% by FY30.

In December 2023, REC signed a €200 million (~$217.23 million) loan agreement with German bank KfW, committing to utilize the funds to undertake reforms in India’s distribution sector.

The company’s board of directors during December 2023 approved an equity investment of ₹142.5 million (~$1.7 million) in Hindustan Power Exchange (HPX). The investment constitutes 19% of the proposed equity share capital of ₹750 million (~$9.02 million) of HPX.