REC FY18 consolidated net profit declined by 25%

Myequity news | Date : 28-05-2018 23:45:00

Navarathna company Rural Electrification Corporation reported Quarter and year ended 31-March-2018 results today.

Below are the highlights of yearly consolidated results.

    •  Total Income reduced by 5.17% due to reduction in lending rates. Interest yield* reduced from 11.64% to 10.55%. Interest spread** reduced from 3.51% to 3.02%.
                *  Interest yield = Ratio of interest income to average interest earning loan assets.
                ** Interest Spread = Yield minus Cost of Funds

    •  Sharp increase in gross NPA from 2.41% to 7.15% because of classifying loans amounting to Rs. 9,591 crores as NPA in line with RBI circular dated 12 Feb 2018. Total gross NPA stands at 17,128 crores.

    •  Net profit decreased by 25% from 6,313.37 to 4,689.46. Due to change in interest yield and provisioning on NPA.

    •  61,712 crores of loans disbursed in FY18 increase by 6% over FY17.

    •  12-month EPS decreased by 25% to 23.75.

    •  Board of directors recommended dividend of Rs. 1.75/Share.

Results were announced post market hours, stock closed at Rs. 119.30 up 5.06% on 28-May-2018.

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