REC Limited Eyes Offshore Financing with Gujarat Gift City Subsidiary

REC Limited, a ‘Maharatna’ company under the Ministry of Power, has applied to establish a subsidiary in Gujarat’s Gift City. This move will enable the company to start financing offshore projects.

Vivek Kumar Dewangan, Chairman and Managing Director of REC Limited, mentioned in a recent interview following the company’s Q1 FY 2025 earnings release that they plan to begin financing offshore projects as soon as possible, with the expectation that this will occur within the current financial year.

“We have submitted our application to set up a subsidiary in GIFT City in Gandhinagar. Once we receive approval, we will proceed accordingly,” Dewangan said.

The company’s Board of Directors approved the financial results for the quarter ending June 2024 on Saturday. REC Limited reported a revenue from operations of ₹13,023 crore, up from ₹10,976 crore in the same quarter last year, marking a 19% increase.

Net profit for the quarter rose by 16% to ₹3,442 crore, compared to ₹2,961 crore in the previous year, representing the highest first-quarter profit for the company.

Dewangan expressed optimism about maintaining a growth trajectory of 15-17%, as indicated in Q1. The company’s loan book grew by 17% to ₹5.30 lakh crore from ₹4.54 lakh crore in June 2023. REC Limited aims to increase its loan book to ₹10 lakh crore by 2030, with 30% coming from renewable energy, 60% from conventional generation and transmission distribution, and the remaining 10% from non-power infrastructure and logistics.

As of June 2024, net credit-impaired assets have decreased to 0.82% from 0.97% in June 2023. The company is targeting zero net NPA by the end of the financial year, with no new NPAs added in the April-June 2024-25 quarter.

About REC Ltd

REC Limited finances various power infrastructure projects, including generation, transmission, distribution, renewable energy, and emerging technologies like electric vehicles and green hydrogen. Recently, the company has also ventured into non-power infrastructure sectors, such as roads, expressways, metro rail, airports, IT communication, and social and commercial infrastructure.

On July 29, 2024, the share price of REC Ltd opened at ₹620.00, touching the day’s high at ₹637.95, as of 11:28 AM on the NSE.

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