New Delhi: State-run Rural Electrification Corporation on Wednesday posted a 48.58 per cent jump in net profit at Rs 474 crore for the quarter ended December 31, 2009, over the same period the previous year.
The company had posted a net profit of Rs 319 crore in the third quarter of 2008.
REC, engaged in financing power projects, sanctioned loans to the tune of Rs 10,000 crore in the third quarter of 2009.
>"We sanctioned Rs 10,000 crore loans in the third quarter of which Rs 6,000 crore worth of loans were disbursed," REC CMD Uma Shankar told reporters here.
Asked about the company's borrowing plans, Shankar said, "We would borrow depending on our needs."
The company sanctioned loans worth Rs 42,000 crore in the nine-month period ended December 31, 2009 of which Rs 15,000 crore worth of loans have been disbursed.
The total income of the company rose to Rs 1,706 crore for the third quarter from Rs 1,275.4 crore in the same quarter of the previous fiscal.
REC, which is likely to hit the capital market with its follow-on public offer next month, may use the proceeds from the FPO to finance the power projects.
REC is hoping to raise Rs 3,300 crore through 20 per cent share sale. The REC offer would comprise five per cent stake dilution by the government and issuance of 15 per cent fresh equity.
Post FPO, the government's share in REC would come down to nearly 66 per cent from the present 81.82 per cent.
Shares of the company closed at Rs 255.60, up 1.43 per cent, on the BSE.
PTI
First Published: Wednesday, January 13, 2010, 19:42