Shares of Maharatna company rose 2.5% to ₹ 436.20 apiece after the Ministry of New and Renewable Energy nominated the company to execute a 40,000 MW Rooftop Solar (RTS) program by 2026.
At 12.05 p.m., REC Limited shares were trading at Rs 435.35 a share on the National stock exchange, up 2.39 percent from the previous close price. The company has a market value of ₹1,14,518 crore. The REC stock touched an all-time high of ₹454.8 apiece on 14 December 2023.
The Ministry of New and Renewable Energy, Government of India (MNRE) has designated REC Limited as the overall Programme Implementation Agency for the Rooftop Solar (RTS) program of the Ministry.
The company is to coordinate with all stakeholders across India to execute the program prepared by MNRE to achieve the cumulative capacity of 40,000 MW from RTS by the year 2026. The company said in its exchange filing.
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 shares have gained a multibagger return of 167 percent in the last six months and 251 percent in the last year. A shareholder investment of ₹ 1 lakh in the company would be worth ₹ 2.67 lakhs in a year.
In QFY24, the business reported a 20% YoY rise in loan books to ₹4.74 lakh billion. Asset quality improved, with Net Credit Impaired Assets at 0.96% (compared to 1.24% YoY).
The revenue of REC has increased year on year by 17 percent from ₹9,956 crore in Q2FY23 to ₹11,688 crore in Q2FY24. Also during the same period, net profit jumped by 39 percent, from ₹2,732 crore to ₹3,790 crore.
The company has a total outstanding loan composition of 90% from the private sector and 10% from the public sector in the first half of the fiscal year of 2024.
The company’s asset quality has improved from 4.03% in Q2FY23 to 3.14% in Q2FY24. The company provision coverage ratio has come down to 1.09% as provision for two stressed assets adjusted for the recoveries under the resolution plan.
Written by Omkar Chitnis
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