Government-owned REC Ltd. saw a 16.3% rise in net profit in the first quarter of fiscal 2025, meeting analysts' estimates. The profit growth was supported by higher interest earned from loan assets.
The company posted a standalone net profit of Rs 3,442 crore in the April-June quarter, compared to Rs 2,961 crore in the same period last year. Analysts polled by Bloomberg had estimated a net profit of Rs 3,591 crore.
The power project financier reported a 18.7% growth in total income at Rs 13,037 crore, compared to Rs 10,980 crore last year. Income from interest earned on loan assets rose by 19% year-on-year to Rs 12,500 crore.
REC's total loan book stands at Rs 5.3 lakh crore as of June. Its operating margin was 33.77%.
The board declared an interim dividend of Rs 3.5 per share for the financial year 2024-25. The record date has been set at Aug. 9 and the dividend will be paid to shareholder on or before Aug. 23.
REC is a leading infrastructure finance company in India and provides interest-bearing loans to state electricity boards, state power utilities, state power departments and private sector for all segments of power infrastructure.
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