REC Ltd. reported a 12% leap in its standalone web revenue within the final monetary yr and sustaining the identical development fee within the present fiscal can be “adequate”, in accordance with Chairperson Jitendra Srivastava.
“On the macro degree, you have got quite a lot of upheavals within the geopolitical sphere,” he mentioned throughout a dialog with Newsstate24 Revenue on Friday. “You’ve got better fluidity out there.”
“If we are able to keep our present 12% development for FY26, I believe that will be adequate,” Srivastava added.
The facility sector lender recorded a 5.7% rise in its consolidated web revenue at Rs 4,310 crore within the quarter ended March 31, 2025.
He credited the sturdy efficiency in FY25 to a “big uptick” in sanctions, which reached Rs 3.37 lakh crore. Disbursals elevated to Rs 1.91 lakh crore from Rs 1.6 lakh crore. “Each of those, mixed with a discount in our non-performing property, have contributed to our backside line,” the CMD mentioned.
The corporate additionally delivered dividends price Rs 4,713 crore to shareholders, alongside important earnings tax contributions to the Union authorities. Srivastava emphasised a excessive return on web price of just about 21%, underscoring that REC is a “pretty good financially managed firm”.
REC’s web curiosity margin noticed a slight enchancment, rising to three.63% in FY25 from 3.57% within the earlier fiscal. “Which means now we have been profitable in bringing down our price of capital,” he mentioned. Nevertheless, he additionally anticipated “some tightening” within the present fiscal.
The state-owned firm has been profitable in decreasing its price of capital each fiscal. A problem for REC is the easing of liquidity as a result of fee cuts by the Reserve Financial institution of India, in accordance with Srivastava. “It turns into simpler for businesses that will not have the requisite experience to decrease their rates of interest and attempt to finance tasks,” he mentioned.
Regardless of credit score price pressures, he mentioned, REC maintains a disciplined lending strategy. “We nonetheless have a look at the basics of the corporate. We do not compromise on the basics of our borrower. Until the borrower is nice, except the undertaking is financially viable, we do not finance it,” Srivastava added.
Shares of REC ended 1.89% decrease at Rs 384.8 apiece on the BSE on Friday, in comparison with a 1.1% decline within the benchmark Sensex.
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