FY24: REC Ltd Reports 125% Jump In Sanctions For Solar Projects

By Manish Kumar/ Updated On Tue, Apr 30th, 2024

Highlights :

The sharp jump in sanctions for solar projects, and solar manufacturing indicates a massive shift underway in the profile of the institution.

FY24: REC Ltd Reports 125% Jump In Sanctions For Solar Projects

REC Limited, a Maharatna Central Public Sector Enterprise (CPSE) today presented its audited standalone and consolidated financial results for the quarter ended March 31, 2024 and FY24. REC Limited comes under the Ministry of Power.

As per the details shared by REC Limited, it recorded its highest-ever annual profit. The media release from the company said that compared to the Q4 of FY24, it reported a 34% rise in its net profit from Rs 3,001 crore (Q4 FY23) to Rs 4,407 crore (Q4 FY24).

One of the attractions was on its lending towards solar projects. REC Limited acts as a leading NBFC for renewable power projects. The company said that it recorded a 125 percent jump in its sanctions for solar projects.

While its sanctions for solar projects in FY23 stood at Rs 9301 crore, it increased to Rs 20,956 crore in FY24. On the other hand, REC which did not lend towards solar module manufacturing in FY23, saw its total sanctions upto Rs 21,565 crore in FY24. Similarly, its sanctions for other projects also proliferated in the last one year.

The report by REC Limited said that while its total sanctions for large hydro projects stood at Rs 682 crore it increased upto Rs 32,450 crore. On the other hand while it did not sanction anything in FY23 for the Green Hydrogen sector, its lending touched Rs 7,997 crore in FY24.

Similarly, its sanctions for electric mobility also surged during FY24. While it sanctioned Rs 2,429 crore in FY23, its total sanctions in FY24 touched Rs 7,214 crore.

“Owing to the improving asset quality and effective resolution of stressed assets, and resetting of the lending rates and effective management of finance cost, REC has been able to record its highest ever annual profit after tax of ₹ 14,019 crores. As a result, the Earnings Per Share (EPS) for the year ended 31st March 2024 accelerated by 27% to ₹ 53.11 per share as against ₹ 41.85 per share as at 31st March 2023,” REC said in a media statement.