REC gains after strong Q1 numbers

Rural Electrification Corporation rose 2.81% to Rs 274.30 at 9:34 IST on BSE after net profit rose 15.26% to Rs 1478.58 crore on 21.3% growth in total income to Rs 5709.63 crore in Q1 June 2015 over Q1 June 2014.

The Q1 result was announced after market hours on Friday, 7 August 2015.

Meanwhile, the S&P BSE Sensex was up 102.90 points or 0.36% at 28,339.29.

On BSE, so far 59,000 shares were traded in the counter as against average daily volume of 1.66 lakh shares in the past one quarter.

The stock hit a high of Rs 275.85 and a low of Rs 272.10 so far during the day. The stock had hit a 52-week high of Rs 371.05 on 4 March 2015. The stock had hit a 52-week low of Rs 234 on 24 September 2014.

The stock had underperformed the market over the past one month till 7 August 2015, sliding 6.45% compared with Sensex's 0.23% rise. The scrip had also underperformed the market in past one quarter, declining 7.65% as against Sensex's 6.16% rise.

The large-cap company has equity capital of Rs 987.46 crore. Face value per share is Rs 10.

Rural Electrification Corporation (REC) announced after market hours on Friday, 7 August 2015, that its board approved the proposal for incorporation of one project specific Special Purpose Vehicle (SPV), as subsidiary company of REC Transmission Projects Company (RECTPCL), for the transmission scheme namely "System Strengthening Scheme in Northern Region (NRSS-XXXVI)" along with LILO of Sikar- Neemrana 400 kV D/C line at Babai (RRVPNL). The company to be incorporated will also be a subsidiary company of REC in terms of the provisions of Section 2(87) of the Companies Act, 2013.

The board also approved the proposal for sale and transfer of 50,000 equity shares of Maheshwaram Transmission (existing project specific SPV Company of RECTPCL) to successful Bidder i.e. Sterlite Grid 3. The Ministry of Power vide its letter dated 29 July 2015 has also conveyed its approval for the above sale and transfer of 50,000 equity shares of MTL to Sterlite Grid 3. Further, in terms of Section 2(87) of the Companies Act, 2013, Maheshwaram Transmission is also a subsidiary company of REC.

REC, a Navratna Central Public Sector Enterprise under Ministry of Power, provides financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects.

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