Budget 2020

Srei Infra Finance Q2 results: Firm posts net profit of Rs 4.72 crore

Srei Infrastructure Finance (Srei) reported a lower consolidated net profit of Rs 4.72 crore in the second-quarter ended September 30, 2020. It had posted a net profit of Rs 55.37 crore in the year-ago period.

Total consolidated income of the company dipped to Rs 1,182.21 crore in the July-September period of 2020-21 as against Rs 1,424.18 crore in the same period of 2019-20, the company said in a statement.

Consolidated assets under management stood at Rs 43,339 crore as on September 30, 2020, the release added.

Commenting on the performance, Srei Infra chairman Hemant Kanoria said: “The first half of this financial year has been very challenging for businesses and stability has been the mantra in this period of pandemic. Many sectors have already started doing well. But infrastructure is a sector where projects have long gestation periods; so any fundamental disruption takes a long time to bring business back on track.”

The need of the hour is for governments – both state and central, as well as public sector undertakings to release the dues of the contractors/construction companies, and the judiciary to issue appropriate orders.

“If cash flow improves in the hands of contractors/infrastructure companies by realisation of dues/arbitration award payments, then the companies can revive and complete pending contracts and/or undertake new ones,” Kanoria added.

Srei said the company has been focusing on the equipment finance business and it will continue to be its area of focus going forward.