New Delhi: State-run non-banking financial company (NBFC) REC Limited has reported a 5.47 percent rise in standalone net profit year-on-year in Q4 of FY2024-25 at Rs 4,236.20 crore. In the corresponding quarter of the previous financial year, REC had reported a PAT of Rs 4016.30 crore. For the entire financial year 2024-25, the net profit has zoomed 12.08 percent, going up from Rs 14,019.21 crore in FY24 to Rs 15,713.21 crore in FY25. The bump in profit after tax comes on the back of increased interest income, which went up from Rs 46,410.11 crore in FY24 to Rs 55,070.11 crore in FY25, up 18.66 percent.
Addressing the media on after declaring the financial results, REC Chairman and Managing Director Jitendra Srivastava said that the company will aim to be a zero net NPA (Non-Performing Asset) company in the FY2025-26. The total revenue from operations went up from Rs 47,146.30 crore in FY24 to Rs 55,911.12 crore in FY25. For Q4 of FY25, REC’s revenue from operations stood at Rs 15,159.44 crore as opposed to Rs 12,613.14 crore in the corresponding quarter of the previous fiscal.
Loan disbursements by REC stood at Rs 1,91,185 crore in FY25 as opposed to Rs 1,61,462 crore in FY24, up by 18 percent. For Q4 of FY25, loan disbursements stood at Rs 45,538 crore up 16 percent in comparison to Rs 39,374 crore in the corresponding quarter of FY24. Net interest margin was up by 6 bps from 3.57 percent in FY24 to 3.63 percent in FY25.
“Owing to growth in all the verticals, resetting of interest rates on loan assets and effective management of Finance Cost, REC is able to maintain its spreads and NIMs resulting in robust profit after tax of Rs 15,713 crore for the year ended March 31, 2025. As a result, the Earnings Per Share (EPS) for the year ended March 31, 2025 accelerated to Rs 59.55 (Annualized) per share as against Rs 53.11 per share as at March 31, 2024,” said REC.
The loan book, ie, Asset Under Management (AUM), has maintained its growth trajectory and has increased on a sustained basis to Rs 5.66 lakh crore as on March 31, 2025 against Rs 5.09 lakh crore as on March 31, 2024. Further, the net NPA reduced to 0.38 percent from 0.86 percent post resolution of five credit impaired loan assets having aggregate amount of Rs 6,171 crore during the FY 2024-25.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has recommended final dividend of Rs 2.60 per equity share subject to approval of shareholders in the ensuing Annual General Meeting of the Company. The total dividend per share (including proposed final dividend) for the financial year 2024-25 is Rs 18 as compared to Rs 16 for financial year 2023-24.
Aided by growth in profits, REC’s net worth has grown to Rs 77,638 crore as on March 31, 2025, as compared to Rs 68,783 crore as on March 31, 2024 registering an increase of 13 percent year-on-year. Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the company stands at a comfortable 25.99 percent as on March 31, 2025.
