May 22, 2012, 05.09 PM IST

Rural Electrification Corp Q4 PAT seen up 9% at Rs 760 Cr

Rural Electrification Corporation is expected to report a growth of 9% year-on-year in its profit after tax of Rs 760 crore for the fourth quarter of FY12, according to CNBC-TV18 poll.

Source: CNBC-TV18
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Rural Electrification Corp Q4 PAT seen up 9% at Rs 760 Cr
Rural Electrification Corporation is expected to report a growth of 9% year-on-year in its profit after tax of Rs 760 crore for the fourth quarter of FY12, according to CNBC-TV18 poll.


Net interest income is seen going up by 25% to Rs 1,065 crore for the January-March quarter of 2012 as against Rs 854 crore in the corresponding quarter of last fiscal.


Expectations


- Expect loan growth of 24%


- Margin erosion likely on the back of elevated funding costs


- Asset quality - key monitorable


- Higher provisions likely


As on Q3, foreign currency borrowings constituted 12% of total borrowings   
**Out of foreign currency borrowing, only USD 250 million remain unhedged


- MTM losses likely to be negligible


REC exposure


- Tamil Nadu SEB: Rs 11,000 crore


- Andhra Pradesh SEB: Rs 12,000 crore


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