The Hindu Business Line : Srei Infra clocks 64% rise in annual net

Kolkata June 19 Srei Infrastructure Finance Ltd (SIFL) has reported 64 per cent increase in profit after tax to Rs 79.2 crore for the year ended March, up from Rs 48.4 crore in the previous year.

Total income grew by 76 per cent to Rs 400 crore (Rs 227.2 crore).

Announcing the annual results, taken on record by the board of directors at its meeting today, Mr Hemant Kanoria, Vice-Chairman and Managing Director, said that the assets under management have gone up to Rs 5,083 crore (Rs 3,393 crore).

He added that the company's net worth grew by 19 per cent to Rs 471 crore (Rs 405 crore).

The PAT for the quarter ended March grew nearly 98 per cent to Rs 31.50 crore (Rs 15.94 crore).

Total income for the quarter jumped to Rs 124.71 crore (Rs 77.15 crore), while gross profit recorded 50 per cent rise to Rs 44.3 crore (Rs 29.6 crore).

Stating that this was the best year for the company in terms of financial performance, Mr Kanoria said: "The business has increased substantially, enabling the company to increase its presence in the infrastructure financing sector exponentially, especially after the recent tie-up with BNP Paribas Leasing Group (BPLG) of France."

Describing Srei's 50:50 joint venture with BPLG as a major step forward, Mr Kanoria said that it would help the company increase market share in the equipment finance business and enable expansion of product line into new financing areas like agriculture, IT and medical and other equipment.

BPLG, a 100 per cent owned subsidiary of BNP Paribas, is the worldwide lease financing arm of the parent; it has been in this business for more than 50 years.

Following the joint venture with BPLG, which will acquire Srei's equipment financing and insurance broking divisions, the global player in equipment leasing will pump in Rs 775 crore towards 50 per cent of the equity share capital of the new outfit.

According to Mr Kanoria, the association with BNP Paribas will enable Srei to access low cost international funds on a continuous basis, adding substantially to shareholder value. He said subject to regulatory approvals and statutory consultations, the new JV company should be in place within the next 5-6 months.

Apart from equipment financing and insurance broking, all other businesses of the Group will remain with Srei Infrastructure Finance.

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