REC Ltd shares registered a new 52-week high of Rs 234.85 per piece on BSE on Thursday after the state-owned company revealed the target to achieve zero net NPA by FY25 and shared a positive outlook in a conference call.
The company said that it has disbursed Rs 53,000 crore so far in the financial year 2023-24. REC expects to conduct disbursals worth a total of Rs 1.5 lakh crore in FY24, which is 18 percent higher than the previous fiscal year’s number.
Its renewable portfolio is anticipated to reach 30 percent of the company’s assets under management (AUM), which means jumping from $3.6 billion to a sharp $45 billion.
The company has witnessed its Aggregate Technical & Commercial (AT&C) losses with respect to discoms reduce massively to 13 percent from 22 percent earlier.
Its net interest margins (NIMs) currently stand at 3.3 percent and REC estimates this figure to increase 3.5 percent by the end of the current financial year. Further, the company’s yields are expected to fall in the range of 9.5 percent to 9.8 percent, REC highlighted in its concall.
The state-owned company has set a target of achieving zero net Non Performing Asset (NPA) by the end of the next fiscal year 2024-25.
A total of nine accounts worth $1 billion are expected to get resolved in FY24, and another 10 accounts are to be resolved in FY25, stated REC.
Shares of REC Ltd were trading 5.3 percent higher at Rs 234.6 per piece on BSE at 3:05 PM.
