REC Ltd on Wednesday reported an 33% year-on-year (YoY) surge in its consolidated net profit for the fiscal’s fourth quarter ended March (Q4FY23) to ₹3,065.37 crore. The state-owned non-banking finance firm had reported a profit of ₹2,301.33 crore in the year-ago period. REC share price closed at ₹133.15 apiece, up by 0.41% on BSE ahead of Q4FY23 earnings result.
Sequentially, the consolidated net profit for Q4FY23 rose by 5.1% from ₹2,915.33 crore in Q3FY23.
The company’s consolidated total revenue from operations rose 6.3% on year to ₹10,243.06 crore from ₹9,633.36 crore in the same period previous year. Sequentially, it was up by 4.7% from ₹9,781.76 crore.
During the quarter that ended in March, the total expenses fell 6.5% on year to ₹6,353.40 crore and sequentially rose 2.7%.
In Q4FY23, the company’s interest income on loan assets stood at ₹9,903.61 crore, up 7.2% on year from ₹9,235.26 crore in Q4FY22. Sequentially, rose 2.4%.
For FY2023, the consolidated net profit stood at ₹11,166.98 crore as compared to ₹10,035.70 crore in FY2022. The total revenue from operations for the same period stood at ₹39,478.26 crore from ₹39,269.05 crore.
A proposal to incorporate project-specific special purpose vehicles (SPVs), wholly owned subsidiaries of REC’s arm REC Power Development and Consultancy Ltd, was also approved by the company. These SPVs will be used for four interstate transmission projects that will be carried out using a tariff-based competitive bidding mode.
The board has also approved Hemant Kumar’s appointment as REC Ltd.’s Chief Compliance Officer for a term of three years beginning on May 6, 2023.
REC Limited, formerly known as Rural Electrification Corporation Limited, is a holding company owned by Power Finance Corporation Limited, which is in turn owned by the Ministry of Power, Government of India. It supports and finances power plant development all throughout India.