Q2 2025 REC Limited Earnings Call Transcript
Key Points
- REC Ltd (BOM:532955) reported the highest ever half-yearly profit of INR7,448 crores, marking an 11% increase year-on-year.
- The company's loan book increased by 15% year-on-year, reaching INR546,117 crores as of September 30, 2024.
- REC Ltd (BOM:532955) has a strong asset quality with gross NPAs reduced to 2.53% and net NPAs to 0.88%.
- The company has a diversified asset base and robust access to funding sources, with a strategic position in the Indian power sector.
- REC Ltd (BOM:532955) has been awarded the highest domestic credit rating of AAA by all four major rating agencies in India.
- The cost of funds has increased, impacting the company's financials, although it is expected to stabilize by Q4.
- There are concerns regarding lending to certain groups, such as Azure, due to past whistleblower issues and management changes.
- The repayment rates were slightly high this quarter, affecting the loan book growth.
- The company's exposure to the private sector is expected to increase, which may pose higher risks.
- There is competitive pressure from banks, particularly in the renewable energy sector, which could impact REC Ltd (BOM:532955)'s market share.
Ladies and gentlemen, good day, and welcome to the REC Limited Q2 FY25 Earnings Conference Call hosted by Elara Securities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Shweta Daptardar from Elara Securities Private Limited. Thank you, and over to you, ma'am.
Thank you, Steve. Good morning, everyone. On behalf of Elara Securities, we welcome you all to Q2 FY25 Earnings Conference Call of REC Limited. From the esteemed management today, we have with us Mr. Vivek Kumar Dewangan, IAS, Chairman and Managing Director; Mr. Vijay Kumar Singh, Director of Projects; Mr. Harsh Baweja, Director of Finance; Mr. Mohananlal Kumabas, Executive Director of Finance; and other senior officials.
We express our gratitude towards the management of REC Limited to provide us the opportunity to host this conference call. Without further ado, I now hand over the call to Mr. Vijay Kumar Singh, Director of Projects, for his opening
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