Companies

Srei reports loss of ₹3,810 crore in Q3

PTI Kolkata | Updated on February 14, 2021

Srei Infrastructure Finance Ltd on Sunday said it has posted a consolidated net loss of ₹3,810 crore during the third quarter of the current fiscal on account of higher and accelerated provisioning as a prudent measure.

The company had reported a net profit of ₹60 crore in the year-ago period.

Its revenue from operations for the October-December period of the current fiscal stood at ₹490 crore as against ₹1,450 crore in the corresponding quarter last year.

The company said its total consolidated provisioning was at ₹3,100 crore for the period under review and the net worth stood at ₹296 crore as of December quarter of FY21.

The Kolkata-based company claimed that the Covid-19 pandemic had impacted its recovery, leading to an asset-liability mismatch.

"The current financial year has been one of the most challenging years in our history of more than three decades.

"The Covid-19 induced stress on our asset quality coupled with the credit squeeze in the NBFC sector has created an unprecedented situation. As a matter of prudence...we have decided to increase our provisions significantly," Srei chairman Hemant Kanoria said.

The lender had in November said a special audit of the company and its subsidiary, Srei Equipment Finance Ltd, was undertaken by an auditor appointed by the Reserve Bank of India.

A special audit is typically undertaken if there is a sharp deterioration in the quality of a lender's book.

Published on February 14, 2021

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