Did REC’s Q4 net profit soar to Rs 4,236 crore with an additional dividend of Rs 2.60?
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Synopsis
REC, the government-backed Navratna company, has reported a remarkable rise in net profit, alongside a substantial dividend announcement. This financial performance not only highlights REC's stability but also its strategic moves in renewable energy partnerships. Dive into the details of REC’s financial triumphs and future ventures.
Key Takeaways
- REC's net profit rose to Rs 4,236 crore for Q4 FY25.
- The company declared an additional dividend of Rs 2.60 per share.
- REC's net interest income surged by 37.6%.
- A new joint venture with BHEL will focus on renewable energy.
- REC's net worth grew by 18% year-on-year.
New Delhi, May 8 (NationPress) The government-backed Navratna enterprise REC announced a significant 5.5% year-on-year increase in its consolidated net profit, reaching Rs 4,236 crore for the January-March quarter in FY25, compared to Rs 4,016 crore during the same period last year.
The net interest income (NII) surged by 37.6% to Rs 5,877 crore in the fourth quarter, up from Rs 4,272.5 crore a year prior.
In addition, the company's board has proposed a final dividend of Rs 2.60 per share (face value Rs 10), supplementing the Rs 15.40 per share paid in four installments throughout FY25. This brings the total dividend for the fiscal year to Rs 18 per share.
Furthermore, REC's board has sanctioned the establishment of a 50:50 joint venture with its subsidiary, REC Power Development and Consultancy Ltd (RECPDCL), and Bharat Heavy Electricals Ltd (BHEL). The joint venture is set to concentrate on renewable energy and additional power and infrastructure initiatives, pending requisite statutory and administrative approvals.
In its third quarter report for December 2024, REC also showcased robust financial health, with a 23% year-on-year rise in standalone net profit, reaching Rs 4,029 crore compared to Rs 3,269 crore in the same quarter of the previous financial year. The NII advanced by 20% year-on-year to Rs 5,133.1 crore, up from Rs 4,290.7 crore last year.
As of Thursday, REC shares were trading at Rs 389.90 on the BSE.
The company also reported a 23% increase in net profit to Rs 4,029 crore for the October-December quarter of this financial year, compared to Rs 3,269 crore in the equivalent quarter of 2023-24.
The net interest income climbed 19% to Rs 4,930 crore during the third quarter, compared to Rs 4,153 crore in the same timeframe last year.
Thanks to profit growth, the company's net worth reached Rs 76,502 crore as of December 31, 2024, a notable increase from Rs 64,787 crore on December 31, 2023, marking an 18% year-on-year growth.
Being a Navratna entity allows REC's management to independently invest up to Rs 1,000 crore or 15% of its net worth, granting the company both administrative and financial autonomy.
Point of View
The reported growth in REC's net profit and its strategic moves in renewable energy signify a robust trajectory for the company. This aligns with the government's vision of enhancing energy infrastructure while fostering autonomy in public sector enterprises. REC's performance is a testament to its commitment to sustainable development and financial stability.
NationPress
21/05/2025
Frequently Asked Questions
What is REC's consolidated net profit for Q4 of FY25?
REC reported a consolidated net profit of Rs 4,236 crore for the January-March quarter of FY25.
How much is the additional dividend declared by REC?
REC declared an additional dividend of Rs 2.60 per share.
What is the focus of REC's new joint venture?
The joint venture will focus on renewable energy and other power and infrastructure projects.
What was REC's net interest income for the fourth quarter?
REC's net interest income for the fourth quarter rose to Rs 5,877 crore, marking a 37.6% increase.
What is the significance of REC's Navratna status?
REC's Navratna status allows it to make independent investments up to Rs 1,000 crore or 15% of its net worth.
