State-run REC Ltd. (formerly known as Rural Electrification Corporation Ltd.), the best-performing stock on the Nifty PSE Index in 2023, reported an 18% growth in its Net Interest Income (NII) to ₹4,159 crore for the October-December period.
Net profit for the quarter also grew by 14% from last year to ₹3,269.3 crore.
REC's asset quality improved on a sequential basis, with gross NPA improving to 2.78% from 3.14% in September, while Net NPA stood at 0.82% from 0.96% in the previous quarter.
Quarterly disbursements were at ₹46,358 crore for REC, which was a growth of 56% from last year and 11% from the previous quarter.
However, provisions for the quarter stood at ₹56 crore, while DAM Capital had estimated it to be ₹37.4 crore during the quarter. This compares to a write-back of ₹294 crore last year and a write-back of 760 crore sequentially.
REC's Assets Under Management (AUM) grew by 21% year-on-year and 4.9% sequentially to ₹4.97 lakh crore.
The company's Net Interest Margin and spreads were the highest in five quarters at 3.61% and 2.85%, respectively.
REC has also been declared the nodal agency for the Pradhanmantri Suryodaya Yojana, which aims to install rooftop solar on 1 crore houses in India.
Shares of REC are off the lows of the day post the results announcements, but remain 6.5% lower at ₹430.5. The stock had risen over 250% in 2023, becoming the best-performing stock among state-run companies.
(Edited by : Amrita)
First Published: Jan 23, 2024 3:09 PM IST
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