Public infrastructure finance company REC Limited recorded a revenue of ₹120 billion (~$1.44 billion) for the third quarter (Q3) of the financial year (FY) 2023-24, a 23.56% year-over-year (YoY) increase from ₹97.12 billion (~$1.17 billion).

The company attributed the performance during the quarter to improved asset quality, increased lending rates, and effective management of financing costs.

REC’s net profit surged by 14% YoY to ₹32.69 billion (~$393.17 million) from ₹28.78 billion (~$346.14 million).

The company approved the highest-ever quarterly loans worth ₹1.32 trillion (~$15.88 billion), a 177% jump from ₹477.12 billion (~$5.74 billion). The renewable energy sector constituted 57% of the total loan approvals during the period.

It disbursed ₹463.58 billion (~$5.58 billion), the highest ever quarterly disbursement during Q3 FY24, a 56% YoY increase. REC earned an interest income from loan assets of ₹118.12 billion (~$1.42 billion), up by 22%.

The company’s net worth as of December 2023 was ₹647.87 billion (~$7.79 billion), an 18% YoY improvement.

In a recent 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.

9M FY24

REC Limited recorded its highest-ever first nine months (9M) profit of ₹100.3 billion (~$1.21 billion), a 24% YoY increase from ₹80.54 billion (~$968.77 million).

The company’s total income rose 19% YoY to ₹345.71 billion (~$4.16 billion) from ₹291.29 billion (~$3.5 billion).

The loan book for the period reached ₹4.97 trillion (~$59.77 billion), up 21% YoY from ₹4.11 trillion (~$49.43 billion).

Loans worth ₹3.26 trillion (~$39.21 billion) were approved during 9M FY24, up 69% YoY from ₹1.93 trillion (~$23.21 billion)

The renewable energy sector constituted 39% of the total loan approvals during the period.

The disbursements were up by 104% to ₹1.22 trillion (~$14.67 billion) from ₹599.07 billion (~$7.21 billion) in 9M FY23.

The company’s income from interest on loan assets was up 18% YoY to ₹334.9 billion (~$4.03 billion) from ₹284.56 billion (~$3.42 billion).

The company’s assets quality witnessed an improvement, with the net credit-impaired assets at 0.82% for 9M FY24, a YoY improvement from 1.12%.

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 the same month also 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.

Recently, the company issued its inaugural yen-denominated green bonds of ¥61.1 billion (~$412.85 million) to finance eligible renewable energy projects under its green finance framework and the guidelines of the Reserve Bank of India.

REC Limited was designated as the overall implementing agency for the Grid-Connected Rooftop Solar Program, which aims to achieve 40 GW of rooftop solar capacity by March 2026.