REC share price jumps 9% on strong December quarter earnings

livemint.com:

REC jumped almost 9 percent in intra-day deals on Wednesday (January 24) after the firm posted strong results for the quarter ended December (Q3FY24). The company's net profit rose 13.6 percent year-on-year (YoY) to ₹3,269.3 crore for Q3FY24 versus ₹2,878 crore in the same quarter last year. Meanwhile, its net interest income (NII) for the quarter under review grew 18 percent YoY to ₹4,159 crore.

Its gross non-performing assets (NPA) ratio improved to 2.78 percent, as against 3.14 percent in the preceding quarter. The net NPAs also improved to 0.82 percent from 0.96 percent in the June-September period. The net interest margin in Q3FY24 came in highest in five quarters at 3.61 percent, as against 3.45 percent in the preceding quarter.

The provisional coverage ratio was also higher at 70.41 percent, as compared to 69.37 percent in the second quarter. REC's Assets Under Management (AUM) grew by 21 percent YoY and 4.9 percent sequentially to ₹4.97 lakh crore. Recently, REC was also declared as the nodal agency for the Pradhanmantri Suryodaya Yojana, which aims to install rooftop solar on 1 crore houses in India.

Meanwhile, it also approved the sale and transfer of the entire shareholding of six subsidiaries (power transmission projects), presently held by REC Power Development and Consultancy Limited (RECPDCL) to the successful bidders selected through tariff-based competitive bidding process. These six projects are Dhule Power Transmission Ltd, Bidar Transmission Ltd, Siker Khetri Transmission Ltd, Pachora Power Transmission Ltd, Karera Power Transmission Ltd and Ishanagar Power Transmission Ltd. The stock rose as much as 8.8 percent to its day's high of ₹472.95.