State-owned power sector financier REC Ltd has announced its financial results for the fourth quarter of FY2024-25, reporting a 5.66% year-on-year (YoY) increase in net profit to ₹4,309.98 crore. The company attributes this growth to higher revenues and strong operational performance.
Financial Highlights
- Total income for Q4 FY25 rose to ₹15,348.37 crore, up from ₹12,706.66 crore in the same period last year.
- Net interest income (NII) surged 38% YoY to ₹5,877 crore.
- Interest income from loan assets increased to ₹14,647 crore, compared to ₹12,168.48 crore a year earlier.
- Other operating income jumped to ₹386 crore.
- FY25 net profit reached ₹15,884.23 crore, marking a significant increase from ₹14,145.46 crore in FY24.
- Total income for FY25 rose to ₹56,434 crore, compared to ₹47,571.23 crore in the previous fiscal.
Dividend Declaration & Market Performance
REC’s board has recommended a final dividend of ₹2.60 per equity share, in addition to the ₹15.40 per share paid in four tranches during FY25, bringing the total dividend for the fiscal year to ₹18 per share. Following the earnings announcement, REC’s shares closed 4.55% lower at ₹392.20 on the BSE.
Strategic Developments
The board has also approved the formation of a 50:50 joint venture between its subsidiary REC Power Development and Consultancy Ltd (RECPDCL) and Bharat Heavy Electricals Ltd (BHEL). The JV will focus on renewable energy and other power and infrastructure projects, subject to necessary statutory and administrative approvals.
With a strong financial outlook and strategic expansion plans, REC Ltd continues to reinforce its position as a leading player in the power sector.
