homeearnings NewsREC focusing on energy transition in India, eyeing 20% share in projects: CMD Vivek Kumar Devangan
REC focusing on energy transition in India, eyeing 20% share in projects: CMD Vivek Kumar Devangan
REC CMD Vivek Kumar Devangan also said that in the last six quarters, the company hasn’t added any new NPAs. He added that in the next two years, REC aims to become a net zero NPA company.
State-owned REC Ltd reported a 21 percent increase in consolidated net profit at Rs 2,968.05 crore for the June quarter of 2023-24, on the back of higher revenues which was recorded at Rs 11,091.77 crore, up from Rs 9,506.06 crore in the same period a year ago.
In the year-ago period, the profit stood at Rs 2,454.16 crore, the company said in a BSE filing. The REC board approved an interim dividend of Rs 3 per equity share of Rs 10 each for 2023-24. The date for the interim dividend is August 14, and it shall be paid/dispatched on or before August 24, the company stated in the filing.
The company is focusing on the energy transition in India and eyeing a 20 percent share in the projects of this initiative. “We are focusing on financing the green projects under the energy transition initiative by government of India. The projects can see an investment of around Rs 15 lakh crore, we are aiming to get 20 per share of this. We are looking to increase our portfolio of renewable energy to around Rs three lakh crore,” says Vivek Kumar Devangan, CMD, REC Limited.
Devangan said that in the last six quarters, REC hasn’t added any new NPAs and in the next two years, it aims to become a net-zero NPA company. The Net Credit-impaired assets have reduced to 0.97 percent with a Provision Coverage Ratio of 70.46 percent on NPA assets, as on 30th June 2023.
Aided by growth in profits, the net worth of the company has grown to Rs 60,886 crores as on 30th June 2023, an increase of 16 percent year-on-year (YoY). The loan book has maintained its growth trajectory and has increased by 17 percent to Rs 4.54 lakh crore as against Rs 3.88 lakh crores as of 30th June 2022.
Indicating the ample opportunity to support future growth, the Capital Adequacy Ratio (CAR) of the company stands at a comfortable 27.60 percent as on 30th June 2023.
The company has also signed multiple MOUs during the G20 meeting in Goa. “MOUs with Rs 2.86 lakh crores signed in G20 meetings in Goa. Rs 50,000 crore for Financing Solar projects and hybrid projects each. MOUs worth Rs 45,000 crore for green hydrogen and green ammonia. Electric mobility, e-buses, infrastructure-MOUs with 25,000 crores were signed,” said Devangan.
First Published: Jul 26, 2023 9:12 PM IST
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