As the rupee hits a fresh trough, breaching the 54 mark, NBFC's like Rural Electrification Corporation (REC) are slowly feeling the pinch. REC'+s Director-Finance, HD Khunteta tells CNBC-TV18 that hedging costs have shot up over the last few months.
The announcement by the appellate authority to allow state electricity regulators to fix their own tariff rates will help increase the revenue inflow of state distribution companies, says HD Khunteta, Director Finance, Rural Electrification Corporation (REC).
REC's director finance, HD Khunteta, tells CNBC-TV18 that he expects interest rates to fall by February 2013 which will help improve margins.
In an interview to CNBC-TV18, HD Khunteta, director finance at Rural Electrification Corporation says, he expects 15% growth in bottom-line going forward.
As far as loan payment issues regarding State Electricity Boards (SEBs) are concerned, Khunteta said that most SEBs pay back on time, while there are payment delays from boards in north eastern states until they get money from the Central Government.
While in the market today, power stocks are zooming ahead on the positive sentiment sent across, there is a question on whether the willingness will be backed by framework. However, HD Khunteta, CMD of Rural Electrification, in his exclusive interview with CNBC-TV18, remains confident on the measures.
SEBs are likely to see reforms after news reports said that the government is keen on cutting power lending companies like REC, PFC and PTC India's losses. In an interview on CNBC-TV18, power minister Sushil Kumar Shinde talks about what set those power stocks on fire yesterday.
HD Khunteta from Rural Electrification Corpration (REC), in an interview on CNBC-TV18, said that Tamil Nadu board's outstanding amount stands around Rs 8000 crore and it is a part of the government department. Hence, he feels that the state power utility cannot afford to default.
In an interview with CNBC-TV18, HD Khunteta, Director Finance, REC said the company will be able to sustain 25% top-line, bottom-line growth compared to previous year.
Rural Electrification Corporation has seen a bottomline growth of about 25% in the quarter with income jumping 23% to Rs 2306 crore. HD Khunteta, director-finance, tells CNBC-TV18 that the company had sanctioned Rs 65000 crore in the previous year. He expects this figure to go up 25% in the current fiscal.
A longer term worry for those exposed to the SEBs is a recent IIFL report which points out that the finances of SEBs has taken a turn for the worse. Harshvardhan Dole VP Research - Institutional Equities of IIFL, talks about the report that he wrote.
HD Khunteta, Director-Finance of Rural Electrification Corporation, in an interview with CNBC-TV18’s Mitali Mukherjee and Sonia Shenoy, spoke about their recent fund raising plans and the road ahead.
Commenting on his budget expectations, HD Khunteta of REC said, the cap for infra bonds should be raised to Rs 50,000. "This will be beneficial to the infrastructure sector as well as power sector, which is part of the infrastructure."
In an interview with CNBC-TV18, HD Khunteta, Director Finance, Rural Electrification Corporation (REC), spoke about the latest happenings in his company and sector.
