REC Ltd Seeks to Finance Overseas Projects, Applies for Subsidiary at GIFT City.

REC Limited, a 'Maharatna' company under the Ministry of Power, has applied to establish a subsidiary in Gujarat's GIFT City, paving the way to finance offshore projects. Chairman and Managing Director Vivek Kumar Dewangan indicated that financing for these projects could begin as soon as this financial year, pending approval.

The company announced its Q1 financial results, showing a 19% increase in revenue from operations to Rs 13,023 crore, up from Rs 10,976 crore the previous year. Net profit rose 16% to Rs 3,442 crore, the highest first-quarter profit recorded.

Dewangan expressed optimism about maintaining a 15-17% growth trajectory, noting a 17% increase in the loan book to Rs 5.30 lakh crore. The company aims to double its loan book to Rs 10 lakh crore by 2030, with 30% coming from renewable energy projects.

REC's market capitalization soared by 219% to Rs 1,38,348 crore at the end of the June quarter, with a share price increase of 221% over the past 12 months. The company also reported a reduction in net credit-impaired assets to 0.82% and aims for zero net NPA by the end of the financial year.

REC, which attained Maharatna status in 2022, finances a wide range of power infrastructure projects and has diversified into non-power infrastructure sectors, including roads, metro rail, airports, and more.

ET