REC Limited, a public Infrastructure Finance Company in India, has announced its Q1 FY25 results, showcasing a strong financial performance. Rural Electrification Corporation (REC) Limited, reported a 16.57% rise in consolidated net profit for Q1 FY25, reaching ₹3,460.19 crore. This growth is primarily attributed to higher revenues during the quarter.
Financial Highlights:
- Consolidated Net Profit: ₹3,460.19 crore, a 16.57% increase compared to ₹2,968.05 crore in Q1 FY24.
- Total Income: ₹13,092.44 crore, a substantial increase from ₹11,108.16 crore in the corresponding quarter of the previous fiscal year.
Other Key Points:
- Interim Dividend: The Company has declared an interim dividend of ₹3.50 per equity share of ₹10 each for the financial year 2024-25.
- Loan Book Growth: The loan book has grown by 17% year-on-year to reach ₹5.30 lakh crore.
- Net NPA Ratio: The net non-performing assets (NPA) ratio reduced to 0.82% from 0.97% in the same period last year.
The growth in net profit is mainly attributed to the increase in revenues, particularly from interest earned on loan assets. The decline in the net NPA ratio indicates an improvement in the company’s asset quality.
REC Share Price Performance – NSE: RECLTD Stock to Watch
On July 26, 2024, REC Limited’s share price closed at ₹623.55, marking a significant 2.56% increase from the previous day’s closing price of ₹608.00. The stock opened at ₹614.10 and reached a high of ₹629.05 during the trading session, with a low of ₹607.50. The trading volume for the day was 11,447,407 shares.
Analysts View for REC Share:
- Buy: A majority of analysts recommend buying REC Ltd. shares, citing the company’s strong growth prospects and attractive valuations.
- Hold: Some analysts suggest holding the stock for investors who already have it in their portfolios.
- Sell: Very few analysts recommend selling the stock at this point.
Additional Insights:
- Technical Analysis: The stock has recently broken out of a key resistance level, indicating further upside potential.
- Investor Sentiment: The recent surge in trading volume suggests strong buying interest from investors.
- Events: Strong Q1 FY25 results of the company’s, which was awaited to provide further insights into its growth trajectory.
Overall, REC Limited’s Q1 FY25 results demonstrate robust financial performance, driven by higher revenues and improved asset quality. The company’s strong growth trajectory is expected to continue in the coming quarters.
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