The shares of Maharatna PSU, REC Limited, opened at Rs 116.15 levels and gained as much as 5 percent to trade at Rs 121.15 levels on Tuesday. The scrip gained after the company reported its quarterly results and announced an interim dividend.
In Q3FY23, their total income stood at Rs 9,795.24 Crore which declined by 3 percent Year on Year from Rs 10,069 Crores and 2 percent from Rs 9,964 Crores Quarter on Quarter.
REC net profit in the quarter under review jumped by 5 percent Year on Year to be at Rs 2,915.33 Crore as against Rs 2,773.44 Crore. In the previous quarter, their net profit stood at Rs 2,732.12 Crore.
Along with this, the company has also announced the payment of a 2nd interim dividend for the financial year 2023. The company will pay a dividend of 32.5% of its face value of Rs 10 which amounts to Rs 3.25 per share. The record date for the purpose has been set as Thursday, February 9th, 2023.
So far in FY 22-23, the company has paid a final dividend of Rs 4.80 and an interim dividend of Rs 5 per share. Cumulatively, the company will pay a total of 13.05 per share which takes its dividend yield to 11% compared to its current market price.
REC Limited, formerly Rural Electrification Corporation Limited is a subsidiary of Power Finance Corporation Limited that finances and promotes power projects across India.
In the past six months, the scrip has gained approximately 22 percent. It is currently trading near its 52-week high of Rs 126.25 that it reached in January this year.
The market capitalization of the company is at Rs 31,941 Crores. Foreign Institutional Investors (FIIs) are heavily invested and hold a 21.5 percent stake in the company.
Written by Anoushka Roy
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