State-owned Rural Electrification Corporation (REC) today reported 15.26 per cent rise in its standalone net profit at Rs 1,478.58 crore for the quarter ended June 30 on the back of higher income from operations.
The company's net profit in the corresponding quarter of the previous fiscal was Rs 1,282.79 crore, REC Ltd said in a BSE filing.
Total income from operations during the quarter was at Rs 5,662.89 crore, registering an increase of 21.3 per cent from Rs 4,667.13 crore in the year-ago period, it added.
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The total expenses of the company, however, increased to Rs 3,585.41 crore from Rs 2,931.82 crore in the year-ago period.
REC said its board, in its meeting today, "approved the proposal for incorporation of one project specific Special Purpose Vehicle (SPV), as subsidiary of REC Transmission Projects Co Ltd (RECTPCL) for the transmission scheme namely 'System Strengthening Scheme in Northern Region (NRSS-XXXVI)' along with LILO of Sikar-Neemrana 400 kV D/C line at Babai (RRVPNL)."
The company to be incorporated will also be a subsidiary of REC.
The board also approved "the proposal for sale and transfer of 50,000 equity shares of Maheshwaram Transmission Ltd (existing project specific SPV company of RECTPCL) to the successful bidder i.E. Sterlite Grid 3 Ltd."
"The Ministry of Power has also approved... Sale and transfer of 50,000 equity shares of MTL to Sterlite Grid 3 Ltd," it said.
Maheshwaram Transmission Ltd is also a subsidiary of REC.
REC provides financial assistance to state electricity boards, state government departments and rural electric cooperatives for electrification projects.
Shares of the company closed 0.97 per cent down at Rs 266.80 on the BSE today.
