Earnings Impact: REC jumps 9.5% to record high on strong Q4 results, soars 30.5% in 8 sessions
REC surged 9.5 percent in intra-day deals today, May 2 to hit a new high of ₹555.45 on the back of strong March quarter (Q4FY24) results. Including today's rally, the stock has extended gains for the eighth straight session, soaring 30.5 percent in this period. The PSU (public sector undertaking) company posted a 33 percent year-on-year (YoY) jump in its consolidated net profit in the quarter under review to ₹4,079 crore, helped by healthy growth in core income and a provision write-back.
It has posted a net profit of ₹3,065.37 crore in the corresponding quarter of the previous fiscal (Q4FY23). According to REC's financial statement, the public sector company wrote-back provisions worth ₹711.9 crore in Q4, compared to an expense of ₹56 crore in Q3FY24, which aided its profit after tax. Meanwhile, its revenue from operations grew 25 percent YoY to ₹12,613 crore during the same period versus ₹10,123.96 crore in the corresponding quarter last year.
Post today's surge, the stock has now skyrocketed a massive 336 percent from its 52-week low of ₹127.40, hit on May 19, 2023. The scrip has soared 273 percent in the last 1 year and over 34 percent in 2024 YTD, giving positive returns in 3 of the 4 completed months this year. It jumped 12.5 percent in April after a 2 percent rise in March.
However, it fell 11.4 percent in February but has risen 20.86 percent in January this year. Read here: ICICI Bank denies report of MD & CEO Sandeep Bakhshi wanting to quit REC is a 'Maharatna' company under the administrative control of the Ministry of Power, Government of India. It is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).
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