Shares of Maharatna, with a market value of Rs 49,399 crore, rose 8.7 percent to a 52-week high of Rs 188.70 per share after the company announced strong June quarter financial results.
At 2:00 p.m., REC Limited shares were trading at Rs 188.30 a share on the National stock exchange, up 8.50 Rs or 14.75 percent.
According to the company’s exchange filing, REC Ltd reported its April-June quarter results (Q1FY24), indicating a 21 percent increase in net profit to Rs 2,960 crore, up from Rs 2,447 crore in the corresponding previous year. The income from operations in the first quarter of the current financial year is Rs 10,964 crore, up 16 percent from Rs 9,468 crore the previous year.
For fiscal 2023-24, the board of directors declared an interim dividend of Rs 3 per equity share of Rs 10 each. The record date for the dividend is set as August 14, 2023.
The REC board also recommended raising of cash through the issuance of unsecured/secured non-convertible bonds or debentures (NCDs) worth up to Rs 1,05,000 crore subject to shareholder approval.
The board of directors of REC Power Development & Consultancy Limited approved the formation of nine project-specific special purpose entities (SPVs) as fully owned subsidiaries.
REC Limited provides and supports rural electrification projects for state power utilities, private sector project developers, central power sector utilities, and state governments.
REC ltd stock has gained 63.09 percent in the last six months and 93.65 percent in the last year.
Profitability ratios have increased for the firm, with operating margin raised from 87.83 percent to 95.32 percent and net profit margin improving from 25.58 percent to 28.28 percent.
Written by Omkar Chitnis
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