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HomeNewsBusinessEarningsREC Q3 profit seen up 12.5%, provisions may hurt: Poll

REC Q3 profit seen up 12.5%, provisions may hurt: Poll

Rural Electrification Corporation's (REC) third quarter profit is expected to rise 12.5 percent year-on-year to Rs 1,381 crore, according to the average of estimates of analysts polled by CNBC-TV18.

February 13, 2015 / 13:24 IST
     
     
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    Rural Electrification Corporation's (REC) third quarter profit is expected to rise 12.5 percent year-on-year to Rs 1,381 crore, according to the average of estimates of analysts polled by CNBC-TV18.

    Net interest income of the state-run power financing company is seen rising 20 percent to Rs 2,081 crore during October-December quarter from Rs 1,735 crore in same quarter last fiscal due to higher loan growth combined with improving net interest margin.

    Net interest margin is estimated to improve on yearly basis due to easing wholesale rates. In Q2FY15, net interest margin touched new highs at 5.12 percent.

    Loan growth is expected to be healthy around 18 percent during the quarter against 17 percent in Q2FY15.

    Analysts expect higher provisions may pull down profitability in Q3 while asset quality may remain largely stable.

    first published: Feb 13, 2015 10:49 am

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