Rural Electrification Corporation reported a 28% on year rise in net profit to R1,754 crore for the quarter ended December led by stable margins and lower cost of borrowings. Total Income for the quarter under review however decreased marginally to Rs 5,958 crore compared with R6,037 crore a year ago.
The company disbursed around R11,599 crore, up 10% in the quarter ended December, and around Rs 37,000 crore in the nine months period to December, AK Agarwal, director finance of REC, said.
Total sanctions for the nine months up to December stood at Rs 65,000 crore and for the third quarter it was around R17,000 crore, up 37%.
The net interest margins were lower by 25 basis points during the quarter at 4.54% compared with 4.79% in same quarter last year.
The company sees an opportunity to raise around Rs 12,000 crore to Rs 15,000 crore in the fourth quarter (Jan-Mar) to meet its FY 2017 requirements. “We will look at all the available options mostly bonds and external commercial borrowing route as the cost of borrowing is almost same at around 7.4% after the domestic rates firmed up in the last 15 days,” Agarwal said.