Rural Electrification Corporation Ltd's Q2FY19 standalone net profit rises 20.1% qoq to Rs1,764cr

The company’s standalone NII stood at Rs2,270cr, up 2.1% yoy and 7.5% qoq

Dec 05, 2018 09:12 IST India Infoline Research Team

Rural Electrification Corporation Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 QoQ (%)
NII 2,283 8.0
Net Profit (adjusted) 1,764 20.1

REC reported a significant improvement in Net Profit for Q2FY19 due to a one-time income from other sources. Net Interest Income rose by 8% qoq to Rs2,283cr. Net Profit stood at Rs1,764cr for the quarter, up 20.1% qoq.
  • Loan book at the end of Q2FY19 stood at Rs2.57 lakh cr (up 6.2% qoq). Gross NPAs at the at the end of Q2FY19 stood at 7.92%, down 20bps qoq. Net NPAs at the at the end of Q2FY19 stood at 4.28%, down 1bps qoq.
  • Yield on assets stood at 10.94% for Q2FY19, an increase of 62bps qoq. Cost of funds decreased by 30bps yoy to stand at 7.57% for the quarter. As a result, Net Interest Margin stood at 4.35% in Q2FY19, an increase of 63bps qoq.
  • Capital Adequacy Ratio stood at 16.14% at the end of Q2FY19.

Technical View:

REC Ltd is currently trading at Rs. 105, down by 1.4 points or 1.32% from its previous closing of Rs. 106.40 on the BSE.
The scrip opened at Rs. 106.50 and has touched a high and low of Rs. 108.60 and Rs. 103.70 respectively. So far 1,67,28,216 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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