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REC (NSE:RECLTD) Profitability Rank : 5 (As of Dec. 2024)


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What is REC Profitability Rank?

REC has the Profitability Rank of 5.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

REC's Operating Margin % for the quarter that ended in Dec. 2024 was 0.00%. As of today, REC's Piotroski F-Score is 9999.


Competitive Comparison of REC's Profitability Rank

For the Credit Services subindustry, REC's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


REC's Profitability Rank Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, REC's Profitability Rank distribution charts can be found below:

* The bar in red indicates where REC's Profitability Rank falls into.


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REC Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

REC has the Profitability Rank of 5.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

REC's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=0 / 53560.3
=0.00 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

REC has an F-score of 9999. It is a bad or low score, which usually implies poor business operation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

4. Consistency of the profitability

5. Predictability Rank


REC Profitability Rank Related Terms

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REC Business Description

Traded in Other Exchanges
Address
Plot No. I-4, Sector 29, Gurugram, HR, IND, 122001
REC Ltd is a nonbanking financial company operating in India. The company's main objective is to finance and promote power sector projects on the subcontinent. REC provides loan assistance to numerous state power utilities, private sector project developers, central power sector utilities, and state governments. REC investments include power generation, power transmission, power distribution, and other system improvement initiatives. REC is also instrumental in implementing several initiatives spearheaded on behalf of the government of India, including rural electrification. It comprises of only one business segment-lending to power, logistic and infrastructure sector. The majority of its revenue derives from long-term financing.

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