REC's shares climb 5% over steady growth in Q1FY25 loan disbursements

Shares of REC soared up to 4.9 per cent intraday at Rs 551 on the BSE in Monday’s intraday trade. This came after the public sector undertaking reported a 27.8 per cent increase in loan disbursements to Rs 43,652 in the first quarter of fiscal year 2024-25.

“This is to inform that REC has continued its growth trajectory and posted yet another quarter with strong operational performance and recorded loan sanctions of Rs 1.12 trillion and loan disbursements of Rs 43,652 crore during the first quarter ended June 30, 2024 of financial year 2024-25, which translates into significant growth of 24 per cent and 27.89 per cent, respectively, over the corresponding quarter of financial year 2023-24, the company said in an exchange filing on Monday.

Of the total loan sanctions Rs 39,655 went for renewable energy projects while 5,351 crore of the total loan disbursements went to these projects.  

REC is primarily engaged in providing finance for rural electrification projects across India. 

During the fiscal year 2023-24, REC reported a net profit of Rs 14,019 crore, marking a 27 per cent increase from Rs 11,055 crore in FY23. Similarly, its net income rose by 49 per cent to Rs 15,063 crore over the same period.

The share price of REC has zoomed 28.5 per cent in the last six months, while gaining 228 per cent in the last one year.

At 12:49 PM; the share price of the company was trading 4.69 per cent higher at Rs 550 per share on the BSE, In comparison the BSE Sensex soared by 0.47 per cent.  

The share price is presently trading at a price to earnings multiple of 9.87 times with an earning per share of Rs 53.24. 

The stock is currently trading its 52-week high of Rs 607, reached on June 3, 2024 . The stock had hit a 52 week low of Rs 159 on July 18, 2023.