PFC, REC shares hit 52-week lows

Thus far in the calendar year 2018, PFC was down 14% and REC by 13%, as compared to less than 1% fall in the Sensex.

Shares of state-owned power finance companies, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have hit their respective fresh 52-week lows on the BSE in early morning trade on Thursday.

REC hit low of Rs 136 and PFC touched low of Rs 103, down nearly 1% each on the BSE in intra-day trade so far. On comparison, the S&P BSE Sensex was trading 0.38% lower at 33,718 at 09:43 am.

PFC (down 6%) and REC (down 4%) have underperformed the market after announced their December quarter (Q3FY18) results, as compared to 1% decline in the benchmark index. Thus far in the calendar year 2018, both these stocks were down 14% and 13%, respectively, against less than 1% fall in the Sensex.

REC standalone net profit dipped 26% to Rs 12.96 billion in Q3FY18 against a net profit of Rs 17.54 billion in the corresponding quarter of the previous fiscal. Total revenue of the company also declined to Rs 56.03 billion from Rs 59.58 billion a year ago quarter.

The board had recommended an interim dividend of Rs 7.40 per equity share of Rs 10 each for 2017-18. The stock had turned ex-dividend on February 15, 2018.

PFC’s standalone net profit also dipped 17% at Rs 16.04 billion in Q3FY18 against Rs 19.5 billion in previous year quarter. The total income of the company was down at Rs 63.2 billion in the quarter from Rs 70.6 billion a year-ago.

PFC on Wednesday after market hours said the board of directors of the Company will meet on February 26, 2018, to consider a proposal relating to declaration of second interim dividend, if any, for the Financial Year 2017-18. The company fixed March 6, 2018 as record date for the same.