REC Ltd's Q3FY25 Quarter Results
- 07 Feb 2025
Result Summary
- REC Ltd reported a 4.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 18.4%.
- Its expenses for the quarter were up by 5.1% QoQ and 17.2% YoY.
- The net profit increased 1.0% QoQ and increased 23.2% YoY.
- The earnings per share (EPS) of REC Ltd stood at 15.5 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 14286.91 | 13706.31 | 12071.54 | 4.2% | 18.4% |
Total Expenses | 9189.34 | 8747.16 | 7843.41 | 5.1% | 17.2% |
Profit Before Tax | 5180.97 | 5097.39 | 4171.69 | 1.6% | 24.2% |
Tax | 1104.62 | 1059.67 | 863.27 | 4.2% | 28.0% |
Profit After Tax | 4076.35 | 4037.72 | 3308.42 | 1.0% | 23.2% |
Earnings Per Share | 15.50 | 15.30 | 12.60 | 1.3% | 23.0% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
REC Ltd, also known as Rural Electrification Corporation Limited, operates within the financial sector, primarily focusing on providing financial assistance to the power sector in India. The company finances various power projects across the country, including generation, transmission, and distribution. REC Ltd is recognized for its critical role in supporting the development of the power infrastructure in India. While specific recent developments are not provided, the company has historically been engaged in initiatives to promote electrification and renewable energy projects. As of the latest data, REC Ltd continues to actively support the energy sector through its financial services.
Revenue
In Q3FY25, REC Ltd reported a total income of ₹14,286.91 crores. This marks a 4.2% increase in revenue compared to the previous quarter (Q2FY25), where the total income was ₹13,706.31 crores. Year-over-year, the revenue grew by 18.4% from Q3FY24, which stood at ₹12,071.54 crores. The growth in total income reflects the company's expanding operations and increased financial engagement in its core sectors. This upward trend in revenue over both the year and the quarter highlights the company's robust income-generating capabilities within its industry.
Profitability
REC Ltd's profitability in Q3FY25 is highlighted by a profit before tax of ₹5,180.97 crores, showing a quarter-over-quarter increase of 1.6% from ₹5,097.39 crores in Q2FY25. On a year-over-year basis, there is a significant rise of 24.2% from ₹4,171.69 crores reported in Q3FY24. The profit after tax for the current quarter is ₹4,076.35 crores, up by 1.0% QoQ and 23.2% YoY from ₹4,037.72 crores and ₹3,308.42 crores, respectively. The tax expense for the quarter is ₹1,104.62 crores, reflecting increases of 4.2% QoQ and 28.0% YoY. The earnings per share (EPS) for the quarter is ₹15.50, which has increased by 1.3% from the previous quarter and 23.0% from the same quarter last year.
Operating Metrics
The financial data provided showcases REC Ltd's operational efficiency and growth over the analyzed periods. The total expenses for Q3FY25 reached ₹9,189.34 crores, reflecting a 5.1% increase from the previous quarter's expenses of ₹8,747.16 crores. Compared to Q3FY24, the expenses rose by 17.2% from ₹7,843.41 crores. Despite the increase in expenses, the company's revenue growth has outpaced the rise in costs, contributing to the overall improvement in profitability metrics. The steady increase in EPS over the quarters and the year suggests effective operational management and strategic financial planning within the company’s financial operations.
