Introduction
REC Limited has delivered another round of solid numbers in its Q4 FY25 report. Investors who follow infrastructure finance will find these results particularly encouraging. It is always useful to see how a major player like REC handles rising costs and keeps growth on track.
Main Points
1. Revenue Momentum
- Revenue from Operations: ₹15,333.54 crore
- Quarter-on-Quarter (QoQ): +8.3%
- Year-on-Year (YoY): +21.5%
- This surge is driven by interest income from power and infrastructure loans. It is like filling a pipeline that keeps flowing stronger each quarter.
2. Profitability Holds Firm
- Profit Before Tax (PBT): ₹5,489.89 crore (QoQ +7.5%, YoY +6.6%)
- Net Profit (PAT): ₹4,309.88 crore (QoQ +7.0%, YoY +7.3%)
- Earnings Per Share (EPS): ₹16.24 (QoQ +6.1%, YoY +7.3%)
- Even with higher impairment provisions, REC manages to keep the engine humming. Imagine a car tackling a hill yet still accelerating.
3. Cost Efficiency and Asset Quality
- Operating leverage and scale benefits offset rising finance costs.
- Impairment expense is lower than last year, while CSR and employee costs remain flat.
- Gross Credit Impaired Assets improved to 1.35% from 2.71% YoY.
- Cleaner assets mean fewer surprises down the road in loan recoveries.
4. Strategic Moves and Dividends
- Final dividend of ₹2.60 per share, taking FY25 total to ₹18 per share.
- Progress in resolutions under the Insolvency and Bankruptcy Code (IBC).
- Joint venture with BHEL for new renewable energy projects.
- These steps point to diversification beyond traditional lending. It is as if REC is adding new lanes to its highway.
Conclusion
REC Limited’s Q4 FY25 results show healthy growth in revenue and profits, underpinned by better asset health. The blend of steady dividends and strategic partnerships suggests a company that is both rewarding shareholders today and building for tomorrow. Investors seeking a stable infrastructure finance play may find REC’s momentum hard to ignore.