SREI Infrastructure Finance declared its second quarter results. Its net profit was at Rs 148 crore. In an interview to CNBC-TV18, Hemant Kanoria, chairman and managing director of SREI Infrastructure Finance says the disbursement has been a little slow. "On the disbursement side, we would be going a little slow because we felt that it was important. We are primarily in the infrastructure sector. Therefore, we may not record a large disbursement growth this particular financial year," he adds.
Below is the edited transcript of his interview on CNBC-TV18.
Q: Could you walk us through the key highlights of the quarter?
A: The gross income for half year had gone up from Rs 1,000 crore to Rs 1,600 crore, a 47 percent jump. The profit before tax (PBT), if we compare its with last year’s first six months, from Rs 139 crore it has gone up to Rs 205 crore. It has recorded a 47 percent growth. In the profit after tax, from Rs 79 crore corresponding period last year, it has gone up to Rs 148 crore this year. So, there has been about 86 percent growth.
The disbursement has been a little slow because the last year in the same period, first six months, we had done about Rs 8,600 crore, this year it has been Rs 6,000 crore. The market has been moving slowing in the infrastructure sector. So, we thought that it is better to just rein down on disbursement growth. But it is not that there has been no growth at all. The Rs 6,000 crore has been the disbursement. The total AUM, asset under management, has gone up to Rs 32,000 crore vis-à-vis Rs 26,000 crore last year.
There has been a slight jump in the net non-performing asset (NPA) also. But it is not substantial yet. We are still at about 1 percent close to about 1.16 percent. It is well very much in control in our limits.
The profit, as we see, the PAT first six months has been quite good. This is primarily because of the fact that the market has been feeling that how the infrastructure would be performing. We have been very cautious in our lending portfolio.
Q: You were talking about Rs 6,000 crore that you have done this quarter. What is the target that you have outlined for FY13 itself in terms of disbursements? Are you on track to meet that guidance?
A: On the disbursement side, we would be going a little slow because we felt that it was important. We are primarily in the infrastructure sector. Therefore, we may not record a large disbursement growth this particular financial year. The basic concentration is to see that the asset quality is good and the profitability is also substantially better. Therefore, we have seen the focus on profitability and asset quality has given results. We feel that the PAT has also jumped up, the asset quality has been good and the net NPA of low at about 1.16 percent.