REC Q2 net up 24% on power sector growth

The robust growth in the country's power sector led to a 24 per cent jump in the Profit After Tax of the state-run Rural Electrification Corporation to Rs 587.36 crore, against Rs 471.82 crore during the same period of the previous year.

"The power sector is growing and, therefore, there is an increase in demand for loans for setting up projects," CMD REC J M Phatak told reporters here.

The company had registered a net profit of Rs 471.82 crore during the same quarter of the previous fiscal (2009-10), he said.

The total income of the company rose to Rs 1,899.59 crore from Rs 1,460.87 crore in the same period of the previous fiscal.

REC plans to raise up to Rs 2,000 crore through the issuance of infrastructure bonds, and is awaiting the Reserve Bank of India's approval for the same.

"We plan to raise Rs 1,500-2,000 crore from infrastructure bonds, and are waiting for RBI approval," Phatak said, adding that the money may be raised around October this year.

REC plans to borrow Rs 28,000 crore during the current financial year (2010-11). Shares of REC closed at Rs 297.95, down 1.34 per cent on the Bombay Stock Exchange.