REC (RECLTD) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever nine-month profit of ₹11,477 crore, up 15% year-over-year, with total income rising 18% to ₹40,805 crore and net interest income up 24% to ₹14,191 crore.

• Loan assets under management grew 14% year-over-year in Q3 to ₹5.66 lakh crore, with highest-ever quarterly disbursement of INR 54,000 crore and robust asset quality (net NPA at 0.74%).

• Significant growth in renewable energy project disbursements (up 79%) and non-power infrastructure/logistics (up 30%) in the first nine months; renewable energy loan book at ₹52,394 crore, supporting over 49 GW.

• Net worth increased 18% year-over-year to ₹76,502 crore; capital adequacy ratio at 25.33%.

• Third interim dividend of ₹4.30 per share declared, totaling ₹11.80 per share for FY25 so far.

Financial highlights

• Total income for nine months was ₹40,805 crore, up 18% year-over-year; standalone net profit for the quarter was ₹4,029.09 crore, up from ₹2,998.10 crore year-over-year.

• Net interest income rose 24% year-over-year to ₹14,191 crore; net interest margin for 9M FY25 at 3.64%.

• Outstanding loan book stood at ₹5,65,621 crore as of December 31, 2024, up 14% year-over-year.

• Renewables loan book grew 58% year-over-year to ₹52,394 crore.

• Basic and diluted EPS (standalone) for the quarter was ₹15.30, up from ₹12.42 year-over-year.

Outlook and guidance

• Loan asset growth targeted at 15%-17% annually, aiming for ₹10 lakh crore AUM by 2030.

• NIMs expected to be maintained above 3.65%-3.7% going forward.

• Consistent loan book growth and strong profitability expected to continue, supported by diversified funding and strategic sector focus.