The Hindu Business Line : Srei Infra Fin net falls 91% at Rs 4 cr

Kolkata, June 12 Srei Infrastructure Finance Ltd posted a 91 per cent drop in net profit for the quarter ended March 31, 2009, at Rs 4 crore against Rs 47 crore during the corresponding period last year.

The drop in net profit was caused mainly by a conscious decision to go slow over disbursements due to liquidity crunch and maintain the quality of portfolio, said Mr Hemant Kanoria, Chairman and Managing Director, Srei.

“As the financial crisis hit India in October 2008, there was a severe liquidity crisis in the country. We, therefore, decided to slow down our disbursements and focus more on maintaining the quality of the portfolio by intensifying the relationship with the clients,” Mr Kanoria said while announcing Srei’s annual results here on Friday.

At a meeting here, the board of Srei recommended a dividend of 10 per cent (12 per cent in 2007-08).

The net profit of Rs 47 crore in the fourth-quarter of 2007-08 was also on account of extraordinary income worth Rs 64 crore which was not available during the quarter under review, he added. The total income for the quarter under consideration at Rs 205 crore was down from Rs 248 crore during same period last year. Disbursements amounted to Rs 1,200 crore.

The net profit for the year ended March 31, 2009 was at Rs 82.57 crore (Rs 134.73 crore). Disbursements during the year grew by 15 per cent at Rs 6,620 crore (Rs 5,737 crore). Srei anticipates 20 per cent growth in disbursements in 2009-10. The net non-performing assets increased marginally to 0.64 per cent (0.28 per cent).

Srei, the Chairman said, plans to raise Rs 7,500 crore worth capital in 2009-10, of which Rs 3,000 crore will be through internal accruals. The company would look at raising Rs 1,000 crore through issue of non-convertible debentures in the next few months. The first tranche of the issue of Rs 250 crore, would be in the market in the second quarter of this fiscal, he said.

The company was persuading the Union Government for further relaxation in norms pertaining to external commercial borrowings.

“Also, the Government should allow us to use India Infrastructure Finance Company Ltd funds through refinance facility for long term funding projects,” said Mr Kanoria.

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