Shares of REC were surging on Monday as the energy finance provider posted a strong business update for the quarter ended June. The stock went up close to 5% to hit an intraday high of ₹551.35.

What Happened: The company announced in an exchange filing that it logged loan sanctions of ₹1.12 lakh crore during the quarter, representing a growth of 24% from the ₹90,797 crore it posted in the same quarter last year.

The public sector firm reported a 27.8% increase in loan disbursements to ₹43,652 crore in the June quarter, compared with ₹34,133 crore posted in the same quarter last year.

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Out of the total loan sanctions, ₹39,655 crore was allocated to renewable energy projects, with ₹5,351 crore of total loan disbursements going to these projects. REC is a Maharatna company, primarily focused on financing rural electrification projects across India.

For FY24, REC reported a net profit of ₹14,019 crore, a 27% jump from ₹11,055 crore it earned in FY23. Its net income also rose by 49% to ₹15,063 crore over the same period.

Price Action: REC’s share price was up 4.23% to trade at ₹547.65 on Monday afternoon.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.