REC powers profit in face of big odds
State-run Rural Electrification Corporation (REC) on Wednesday reported a 0.46 per cent decline in standalone net profit at Rs 1,369.86 crore for the quarter ended December 31, 2015 due to slight increase in allowances against loans. "The company has posted a net profit of Rs 1,369.86 crore for December quarter as compared to Rs 1376.28 crore for the quarter ended December 31, 2014," REC said in a statement to BSE.
The total income increased to Rs 6037.45 crore from Rs 5244.32 crore in the year-ago period. The company made higher provisions for allowances against standard loans at 0.30 per cent from existing 0.25 per cent because of revised RBI norms.
Due to this, profit before tax for the quarter and nine months ended December 31 is lowered by Rs 23.30 crore and Rs 69.46 crore respectively.
Its interest income during the quarter under review increased to Rs 5,987.25 crore from Rs 5,144.53 crore in the year-ago period. However, the other operating income almost halved to Rs 30.70 crore in the third quarter from Rs 60.76 crore.
The company has declared an interim dividend of Rs 12 per equity share of Rs 10 each for the financial year 2015-16, which will be paid on February 18, 2016. In a separate filing, the company has posted an audited standalone net profit of Rs 3097.77 crore for the half year ended September 30, 2015 as compared to Rs 2787.09 crore in the year-ago period.
Rural Electrification Corp’s total income increased to Rs 11,634.36 crore from Rs 9,772.97 crore.