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Yahoo
15-05-2025
- Business
- Yahoo
REC Ltd (BOM:532955) Q4 2025 Earnings Call Highlights: Record Profits Amidst Challenges
Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. REC Ltd (BOM:532955) recorded its highest ever annual profit of 15,713 crores, marking a 12% year-on-year growth. The company's net worth increased by 13% to approximately 78,000 crores. REC Ltd's total income grew by 20%, reaching around 56,000 crores. The net interest margin improved to 3.63%, an increase of 6 basis points from the previous year. The company maintains a strong capital adequacy ratio of 26%, well above the RBI requirement, providing a cushion for future growth. REC Ltd faced prepayments of 34,000 crores, which impacted the potential growth of its loan book. There are ongoing issues with the signing of Power Purchase Agreements (PPAs) in the renewable energy sector, which could affect future project funding. The company has 12 projects under NPA, with some requiring resolution through the National Company Law Tribunal (NCLT). There is concern about the elevated provision coverage ratio for private renewable projects, indicating potential stress in this segment. The declining interest rate environment poses a challenge, as banks may aggressively seek to refinance projects funded by REC Ltd. Warning! GuruFocus has detected 2 Warning Sign with BOM:532955. Q: What is REC Ltd's outlook on disbursement growth for FY 2026, considering the elevated repayment rates? A: REC Ltd expects disbursements to reach around ?210,000 crore during the year, provided market conditions remain favorable. Prepayments are anticipated to continue at a similar rate, with approximately ?100,000 crore generally due annually. The company received prepayments of around ?34,000 crore this year, primarily from the RBPF scheme, which allows for surplus funds to be repaid and re-disbursed. (Respondent: Unidentified_6) Q: Can you provide an update on the renewable energy projects, particularly regarding the signing of PPAs and any stress in the private renewable book? A: REC Ltd only funds projects with signed PPAs, so the lack of PPA signing does not pose a risk to the company. While there are delays in PPA signings, they are expected to be resolved over time. Regarding the private renewable book, there has been an increase in provision coverage due to some rating downgrades, but no new NPAs have occurred. (Respondent: Unidentified_7 and Unidentified_6) Q: What are REC Ltd's strategies to address the potential pressure from declining interest rates and competition from banks? A: REC Ltd plans to incentivize early project completion and offer refinancing options post-COD. The company is also streamlining business processes to enhance ease of doing business. Despite the declining rate environment, REC Ltd's unique sector expertise and competitive rates are expected to retain business. (Respondent: Unidentified_3 and Unidentified_6) Q: How does REC Ltd plan to achieve its target of a net zero NPA by the end of FY 2026? A: REC Ltd aims to resolve the remaining 12 NPA projects by the end of FY 2026. The company has filed IBC cases for six projects and expects significant recoveries from these resolutions. (Respondent: Unidentified_6) Q: What is the expected borrowing for FY 2026, and how will it be divided between domestic and foreign sources? A: REC Ltd plans to borrow ?170,000 crore in FY 2026. The company evaluates funding sources based on cost-effectiveness at the time of requirement, choosing between domestic and foreign options, including ECBs, based on the most favorable rates. (Respondent: Unidentified_6) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
09-05-2025
- Business
- Time of India
REC to provide about Rs 2.5 lakh cr finance for renewable energy projects till 2030
New Delhi: State-owned non-banking finance firm REC Ltd will increase its exposure to renewable energy projects by about ₹2.5 lakh crore in next six years to aid India's target of having 500 GW of non-fossil fuel energy by 2030. REC currently has an exposure of about ₹53,000 crore in renewable energy projects with a total loan book of ₹5.67 lakh crore as on March 31, 2025. The company has planned to achieve a loan book of ₹10 lakh crore including ₹3 lakh crore exposure in renewable energy project by 2030. Renewable energy is a key area where the company will focus in the coming six years in view of nation's ambitious target of having 500 GW renewable energy by 2030. Talking to PTI, REC Chairman and Managing Director Jitendra Srivastava said, "Currently, our loan book stands at around 5.67 lakh crore. and we are trying to aim for a loan book of 10 lakh crore by 2030. Out of this, we would like to see the renewable sector touching around 3 lakh crore, which is currently around ₹52,000 crore to ₹53,000 crore. So we are hopeful. We would like to push the sector." He said the company will be fairly aggressive in the renewable energy sector. India's installed renewable energy capacity is about 220 GW as of March 31, 2025, which includes around 48 GW large hydro power project, over 50 GW wind energy and about 106 GW solar projects. India needs to add 50 GW of renewable energy capacity per annum till 2030 to achieve the target of 500 GW. Thus the nation needs a lot of investment and finance facility to achieving this tall order. The government has appointed REC as the nodal agency for implementing roof-top solar scheme ' PM Surya Ghar Yojana '. About the progress on the scheme, Srivastava said, "We have a target of 1 crore households for PM Surya Ghar Yojana, out of which 51 lakh applications have come in. Out of this, 12 lakh people have already received it and we are trying to complete our target of 1 crore households in next two years." About reducing the net credit impaired assets or bad loans, he stated that the company is targeting zero bad loans this fiscal, which has already been brought down to 0.38 per cent from 0.86 per cent a year ago. He also informed that there are 12 cases of bad loans and the company is working on them.
Mint
09-05-2025
- Business
- Mint
L&T, Britannia to Zee Entertainment: 6 Stocks declare dividend up to ₹75: Do you own?
Dividend Stocks: L&T (Larsen & Toubro Ltd), Britannia Industries , Zee Entertainment , Asian Paints, REC Ltd and Aarti Industries have declare dividend up to ₹ 75 L&T (Larsen & Toubro Ltd )- The Board of DiRECtors of L&T has recommended a Final Dividend of Rs.34/- per share of the face value Rs. 2/- each for the financial year ended March 31, 2025. During the previous year L&T had paid final dividend Rs. 28/- per share L&T said that it will arrange to pay the proposed Final Dividend after approval of the shareholders in the ensuing Annual General Meeting. Record date The Company has fixed Tuesday, June 3, 2025 as the Record Date for determining the entitlement of Members for the proposed Final Dividend. The company has recommended final dividend of ₹ 75/- per Equity Share of face value of ₹ 1/- each for the financial year ended 31st March, 2025 to be declared at the ensuing 106th Annual General Meeting ('AGM') of the Company. Final Dividend if declared, will be paid within the timelines prescribed under the law, said Britannia Britannia Industries has fixed the date of 106th AGM to be held on Monday, 11th August, 2025. Zee Entertainment - The Board of Zee Entertainment Enterprises Ltd has RECommended dividend of Rs. 2.43/- per equity share of Re. 1/- each for the financial year 2024-25, which is subject to the approval of the Members at the ensuing Annual General Meeting of the Company. REC Ltd- The company Board has made recommendation of final dividend of ₹ t2.60/- (Rupees Two and Paise 5ixly only) per equity share of face value of ₹ lO/- each for 'he financial year 2024-25. The same is subject 10 approval of shareholders in the ensuing Annual General Meeting ("AGM"). This dividend is in addition to the Interim Dividend(s) of ₹ 15.40/ - per equi!)' share already declared in four tranches, thereby making total dividend for the Financial Year 2024·25 by REC Ltd to ₹ 18 per equity share on face value of ₹ lO/· each The Board of Directors at their meeting held on. Thursday, 8th May 2025, while considering and approving Financial results for the quarter and year ending March 2025 have also Recommended payment of final dividend of Rs. 20.55 (Rupees twenty and paise fifty -five only) per equity share of the face value of Re. 1 (Rupee one) each for the financial year ended 31st March 2025, which is subject to the approval of the shareholders at the ensuing 79th Annual General Meeting of the Company. The total dividend by Asian Paints for the financial year ended 31st March 2025, aggregates to Rs. 24.80 (Rupees twenty-four and paise eighty only) per equity share of the face value of Re. 1 (Rupee one) each including the interim dividend of Rs. 4.25 (Rupees four and paise twenty-five only) per equity share as approved by the Board of Directors at their meeting held on 9th November 2024, which was paid thereafter. Record date for Asian Paints dividend The Company has fixed Tuesday, 10th June 2025 as the Record Date for determining the entitlement of members to the final dividend for the financial year ended 31 st March 2025. Dividend payment date -The dividend, if approved by the shareholders will be paid on or after Monday, 30th June 2025. The Board of Aarti Industries has recommended Dividend of Rs. 1/- (20%) per Equity Share of Face Value of Rs. 5/- each for the Financial Year ended March 31, 2025, subject to the approval of the Shareholders at the ensuing Annual General Meeting of the Company. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Business Standard
08-05-2025
- Business
- Business Standard
REC to focus on thermal, nuclear projects; targets zero NPAs by FY25
State-owned power sector financier REC Ltd will renew its focus on thermal power assets, anticipating growth in the segment to meet rising power demand, the company's senior management said during a post-results conference. The non-banking financial company (NBFC) is also exploring investment in nuclear power, particularly Small Modular Reactors (SMRs). The management noted that any SMR project by a state-owned entity would be of interest during its initial phase. Recently, REC sanctioned two new thermal power plants in Rajasthan, two in Madhya Pradesh and one each in Haryana and Maharashtra. However, the company reiterated that its commitment to renewable energy remains intact, with plans to allocate 30 per cent of its loan portfolio to green energy by the end of this decade. Speaking at the conference, newly appointed chairman and managing director (CMD) Jitendra Shrivastava said the company is aiming to become a 'zero NPA' firm by the end of the current financial year. 'Our non-performing assets (NPAs) have come down significantly. We are now at 0.38 per cent as on 31 March 2025, and we hope to be a zero NPA company this year,' Shrivastava said. REC reported a 5.6 per cent rise in consolidated net profit at ₹4,309 crore in Q4FY25. Total income rose to ₹15,348 crore, up from ₹12,706 crore in the same period last year. For the full financial year 2024–25, REC's net profit increased to ₹15,884.23 crore from ₹14,145.46 crore in FY24. Total income rose to ₹56,434 crore in FY25 from ₹47,571.23 crore in the previous year.
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Business Standard
08-05-2025
- Business
- Business Standard
REC to provide Rs 2.5 trn finance for renewable energy projects till 2030
State-owned non-banking finance firm REC Ltd will increase its exposure to renewable energy projects by about Rs 2.5 trillion in next six years to aid India's target of having 500 GW of non-fossil fuel energy by 2030. REC currently has an exposure of about Rs 53,000 crore in renewable energy projects with a total loan book of Rs 5.67 trillion as on March 31, 2025. The company has planned to achieve a loan book of Rs 10 trillion including Rs 3 trillion exposure in renewable energy project by 2030. Renewable energy is a key area where the company will focus in the coming six years in view of nation's ambitious target of having 500 GW renewable energy by 2030. Talking to PTI, REC Chairman and Managing Director Jitendra Srivastava said, "Currently, our loan book stands at around 5.67 trillion. and we are trying to aim for a loan book of 10 trillion by 2030. Out of this, we would like to see the renewable sector touching around 3 trillion, which is currently around Rs 52,000 crore to Rs 53,000 crore. So we are hopeful. We would like to push the sector." He said the company will be fairly aggressive in the renewable energy sector. India's installed renewable energy capacity is about 220 GW as of March 31, 2025, which includes around 48 GW large hydro power project, over 50 GW wind energy and about 106 GW solar projects. India needs to add 50 GW of renewable energy capacity per annum till 2030 to achieve the target of 500 GW. Thus the nation needs a lot of investment and finance facility to achieving this tall order. The government has appointed REC as the nodal agency for implementing roof-top solar scheme 'PM Surya Ghar Yojana'. About the progress on the scheme, Srivastava said, "We have a target of 1 crore households for PM Surya Ghar Yojana, out of which 51 lakh applications have come in. Out of this, 1.2 million people have already received it and we are trying to complete our target of 1 crore households in next two years." About reducing the net credit impaired assets or bad loans, he stated that the company is targeting zero bad loans this fiscal, which has already been brought down to 0.38 per cent from 0.86 per cent a year ago. He also informed that there are 12 cases of bad loans and the company is working on them.
