State-owned Rural Electrification Corporation (REC) today reported 30 per cent decline in standalone net profit to Rs 1,214.66 crore in the second quarter ended September 30, mainly due to lower revenues.
The company's standalone net profit was Rs 1,751.27 crore in the quarter ended September 30, 2016, REC said in a BSE filing.
According to the statement, total revenue of the company decreased to Rs 5,627.71 crore in the second quarter from Rs 6,108.55 crore in the same period last fiscal.
The company's main business is to provide finance to power sector. Therefore, its most of the revenue comes from interest income on advances.
The interest income of the company has declined to Rs 5,371.05 crore in the September quarter from Rs 5,755.86 crore in the year-ago period.
The company's half yearly profit till September 30, 2017 also dropped to Rs 2,515.80 crore from Rs 3,172.13 crore in the corresponding quarter last year. Similarly, the total revenues decline to Rs 11,289.87 crore from Rs 12,159.28 crore in the same period previous fiscal.
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