REC Reported A Net Profit Of ₹15,713 Crore For The Financial Year 2025
REC Limited's Board of Directors has approved the audited standalone and consolidated financial results for the quarter ended March 31, 2025, registering a healthy financial and operational performance across the parameters.
Operational and Financial Key Points:
Q4 FY25 vs Q4 FY24 (Standalone)
- Disbursements: ₹45,538 crore vs ₹39,374 crore, growth of 16%
- Net Interest Income: ₹5,876 crore vs ₹4,263 crore, growth of 38%
- Net Profit: ₹4,236 crore vs ₹4,016 crore, growth of 5%
- Total Income: ₹15,174 crore vs ₹12,263 crore, growth of 24%
- Net Interest Margin: 3.64% vs 3.60%, growth of 4 bps
Operational and Financial Key Points
12M FY25 vs 12M FY24 (Standalone)
- Disbursements: ₹1,91,185 crore vs ₹1,61,462 crore, growth of 18%-
- Net Interest Income: ₹19,878 crore vs. ₹15,685 crore, growth of 27%-
- Net Profit: ₹15,713 crore vs. ₹14,019 crore, growth of 12%
- Total Income: ₹55,980 crore vs. ₹47,214 crore, growth of 19%
- Net Interest Margin: 3.63% vs. 3.57%, growth of 6 bps
Robust Profit of Rs. Crore
Due to growth across all segments, re-setting of interest rates on loan assets and effective management of finance cost, REC has been able to maintain its spreads and NIM, resulting in robust Profit after Tax of Rs. 15,713 crore for the year ended March 31, 2025 As a result, earnings per share (EPS) for the year ended March 31, 2025 increased to Rs 59.55 (annualised) per share as against Rs 53.11 per share as on March 31, 2024.
Growth Momentum Maintained
The loan book i.e. assets under management (AUM) has maintained its growth momentum and increased on a sustained basis to ₹5.66 lakh crore as on March 31, 2025 as against ₹5.09 lakh crore as on March 31, 2024. Further, net loan impaired assets declined from 0.86% to 0.38% after resolution of five loan impaired loan assets amounting to a total of ₹6,171 crore during FY 2024-25. Due to increased profits, the net worth increased to ₹77,638 crore as on March 31, 2025 as against ₹68,783 crore as on March 31, 2024, an increase of 13% over the same period last year.
Capital Adequacy Ratio
The Company's Capital Adequacy Ratio (CRAR) stands at a comfortable level of 25.99% as on March 31, 2025, indicating ample room to support future growth.
Recommendation of Final Dividend per Equity Share
Continuing the tradition of rewarding its shareholders, the Board of Directors of the Company has recommended a final dividend of ₹2.60 per equity share (of face value of ₹10/- each), subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. The total dividend per share (including proposed final dividend) for FY 2024-25 is ₹18/- while for FY 2023-24 it is ₹16/-.
Investment in Infrastructure Bonds
To boost the availability of term debt finance, IIFCL invested in infrastructure bonds and InvITs in FY 2021-22. Since then, the Company has witnessed substantial growth in investments in bonds and InvITs with Rs 29,102 crore and Rs 14,220 crore respectively as on March 31, 2025.
