Rural Electrification Corporation

Pre Results Estimates

REC Ltd (Rural Electrification Corporation) is coming up with its Q2 results, i.e. July-Sept quarter on Monday i.e. on 9th November 2015.

CURRENT NEWS IN STOCK:

·        As per the information released Company appoints S.K. Gupta as director.

·        They plan to raise Rs 700 crore via public issue of tax-free NCB, which stands for non-convertible bonds.

NOW Q2 PRE RESULTS ESTIMATES:

·        Net profit for the quarter two is seen up by nearly 4.7% on a yearly basis, which can be stood to near around Rs 1,571.3 crore.

·        NII (Net interest income) may also jump nearly 18.5% to Rs 2407 crore from to Rs 2032 crore in the same quarter last fiscal.

·        Loan growth and disbursements may remain steady on Y-o-Y basis (year on year basis)

KEY FACTOR OF RESULT (NPA)

Asset quality is the key factor to watch out in quarter two results so it has been largely healthy in previous quarters. NPA which stands for Non-performing assets were at 0.7 percent in the last quarter i.e. Q1 and company also declared Rs 240 crore of NPAs in June quarter. Provisions will also seen as the company had ramped up provisions (on incremental standard assets) 0.25 percent in the previous quarter.

FROM TECHNICAL FRONT:

Stock tanks more than 10 percent on Friday as well as given major breakouts of its support level. If the results came as per expectation stock will move up will heavy volume, for short term or intraday buying could be seen above 245 and now support could be seen around 255.

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Rajnish Singh is a staff writer at www.trifidresearch.com/blog
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