REC Limited’s market capitalization surged by 219 per cent in the first quarter, reaching Rs 600 billion. Additionally, REC’s net profit saw an increase of Rs 3.44 billion, resulting in a total profit of Rs 32.23 billion for the quarter. This performance is attributed to higher income from operations, reduced finance costs, and improved asset quality.
REC’s income from operations rose to Rs 100.71 billion, an 11 per cent increase compared to the previous year. Finance costs decreased by 12 per cent, amounting to Rs 52.57 billion. The reduction in finance costs is linked to the company’s strategy of prepaying high-cost loans and issuing low-cost bonds.
REC’s focus on maintaining asset quality led to a decrease in net non-performing assets (NPAs) to 1.65 per cent from 1.77 per cent. REC also declared an interim dividend of Rs 4.50 per share for its shareholders.
The Economic Times