State-run Rural Electrification Corporation (REC) today reported a 28.07 per cent increase in net profit for the December quarter at Rs 1,754.4 crore.
The company had reported a net profit of Rs 1,369.86 crore in the corresponding quarter last fiscal.
Its total income for the October-December period declined 6.17 per cent to Rs 5,646.35 crore from Rs 6,017.95 crore a year-ago.
"The increase in net profit despite a decline in income is a reflection of a rise in other income which is around Rs 311.40 crore which consists of forex gains, changes in fair value of the interest rates and interest earned on tier 1 bonds in which REC had invested Rs 1,500 crore as well as a reduction in total expenses to the tune of around Rs 674 crore," a senior company official said.
As on December 31, the company's loan book has increased to Rs 2,01,937 crore and the outstanding borrowings is Rs 1,67,612 crore. Its gross NPAs stood to 2.32 per cent as on December 31.
REC has so far received Rs 31,000 crore as repayment from SEBs under the government's UDAY scheme.
"Nearly 20 states and one Union Territory which have signed agreements under the UDAY scheme have repaid around Rs 31,000 crore, which is nearly 70-80 per cent of the total exposure the company has towards these state utilities," REC's Director Finance Ajeet Agarwal said.
He said four states including Uttar Pradesh, Punjab, Rajasthan and Haryana have contributed nearly 40 per cent of the total repayments received under the UDAY scheme.
"With their loan burden coming down, we expect the demand from SEBs to rise over the period," Agarwal added.
When asked about its fund raising plans, he said, "we will be raising around Rs 12,000-14,000 crore in this last quarter mainly through bonds from institutional investors or depending on the current market position.
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