REC Limited
REC is a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).EC was incorporated in 1969 in the backdrop of severe drought and famine in the country, to energise agricultural pump-sets for irrigation purposes, thereby reducing the dependency of agriculture on monsoons. REC is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution.
Key Services
- Loan for Generation Projects
- Loan for Transmission Projects
- Loan for Distribution Projects
- Short-term loans/Medium-term loans
- Infra Finance Company
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | March 2024 | March 2023 | March 2022 |
| Sales | 47,517 | 39,486 | 39,276 |
| Sales Growth % | 20.34% | 0.53% | 10.46% |
| Expenses | -366 | 1,858 | 4,838 |
| Operating Profit | 47,883 | 37,628 | 34,438 |
| OPM % | 101% | 95% | 88% |
| Net Profit | 14,145 | 11,167 | 10,036 |
| EPS in Rs | 53.72 | 42.41 | 38.11 |
Synopsis of Financials
- Q1 FY’25 results indicate a growth trajectory maintained from the previous year.
- Total sanctions increased by 24% to ₹1,12,791 crores in Q1 FY’25 compared to ₹90,797 crores in Q1 FY’24.
- Disbursements grew by 28% to ₹43,652 crores in Q1 FY’25 from ₹34,133 crores in Q1 FY’24.
- Asset under management (AUM) rose by 17% to ₹5,29,739 crores in Q1 FY’25, up from ₹4,35,000 crores in FY’24.
Final Outlook
1.REC has a comparative good working capital days compared to its competitors .
2.Total Revenue Annual growth is higher than historical averages.
3.Revenue Growth Annual YoY % is growing faster than historical averages.
REC Ltd. has a durability score of 65, which indicates High Financial Strength. A High Durability Score (greater than 55) indicates good and consistent financial performance : stable revenues, cash flows, and low debt,thus can be useful foe investing.
Total ShareHolders Funds Annual growth is higher than historical averages.Total Assets Annual growth is higher than historical averages thus the company is showing a positive sign thus it can give good returns in the future thus investors shall invest in it.
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