REC shares surge 8.6% to hit record high on highest-ever quarterly profit in Q2

livemint.com:

₹3,789.90 crore versus ₹2,732.12 crore. “Owing to the improving asset quality, increase in lending rates and effective management of Finance Cost, REC is able to record its highest ever quarterly profit," the state-owned power sector financing company said in a statement. The stock surged as much as 8.6 percent to its new record high of ₹307.35 in intra-day deals today.

It has now rallied over 213 percent from its 52-week low of ₹98.10, hit on November 10, 2022. The stock has given multibagger returns in the last 1 year as well as in 2023 YTD. It has risen 174 percent in the last 1 year and 164 percent in 2023 YTD, giving positive returns in 9 of the 10 months of this year so far.

It was red only in February, down 6.12 percent. Meanwhile, it rose for 8 straight months since March 2023, soaring almost 152 percent between March and October. During the period under review, loans worth ₹1.04 lakh crore were sanctioned, up from ₹84,889 crore sanctioned a year ago.

Loans for renewable energy projects accounted for 24 percent of the total sanctions. The company's loan book increased 20 percent to ₹4.74 lakh crore from ₹3.94 lakh crore in the year-ago period. “Signifying improving asset quality, the net credit-impaired assets have reduced to 0.96 percent with a provision coverage ratio of 69.37 percent on NPA assets, as of 30 September 2023," noted the firm.

The capital adequacy ratio (CRAR) of the company, which largely lends to the power sector, also stood at a comfortable 28.53 percent at the end of September. The company has diversified into the infrastructure and logistics sector in a major way, ever since it became a Maharatna company in September 2022. The board of directors of the firm has also approved an interim