January 24, 2023
New Delhi, India
REC Q3 Results
REC reported a notable 13.6% YoY growth in net profit, reaching Rs 3,269.3 crore for the quarter ending December 2023. The company’s net interest income (NII) also demonstrated strength, climbing 18% to Rs 4,159 crore, compared to the same period last fiscal.
Asset Quality Improvement:
The corporation finance corporation showcased improved asset quality, with the gross non-performing assets (NPA) ratio decreasing to 2.78%, down from 3.14% in the preceding quarter. The net NPA followed suit, showing improvement from 0.96% in June-September to 0.82% in Q3.
Financial Ratios and Margins:
REC’s net interest margin (NIM) rose to 3.61% in Q3 FY24, reflecting an increase from 3.45% in the previous quarter. The provisional coverage ratio, a measure of risk mitigation, reached 70.41%, up from 69.37% in the second quarter.
Also Check: Axis Bank and Tata Elxsi Post Q3 Results
Market Response:
Despite the positive financial indicators, REC shares experienced a 6.38% decline, trading at Rs 430.65 apiece on the BSE on January 23. This dip may be attributed to broader market conditions or specific factors influencing the energy sector.
Conclusion:
REC Ltd’s Q3 FY24 results paint a positive picture of financial health, marked by increased profitability and improved asset quality. However, the dip in share value amid market volatility underscores the impact of external factors on short-term stock performance.
Check Latest Q3 Results
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