To hive off road projects biz in FY11: SREI Infra

In an interview with CNBC-TV18, Hemant Kanoria, CMD, SREI Infrastructure, spoke about the results and his outlook for the company.

Here is a verbatim transcript of the exclusive interview with SREI Infrastructure on CNBC-TV18. Also watch the accompanying video.

Q: Can you walk us through first what your revenue and profit performance has been this quarter around?

A: This quarter the business has grown by about 111% that is Rs 6,243 crore has been the growth in the business for this quarter for the disbursement that we have done. The consolidated PBT (profit before tax) has moved up to about Rs 74.61 crore. There has been a jump in the profit after tax to Rs 46.65 crore compared to Rs 38 crore last year in the same quarter.

The total asset under management has gone up to about Rs 14,500 crore from Rs 10,000 crore which was at the end of the financial year. The consolidated operating profit has been Rs 98 crore against Rs 58 crore in the first quarter of the last fiscal. Total income has gone up to about Rs 323 crore from Rs 170 crore and the pre-tax profit is Rs 74.61 crore from Rs 62 crore.

Q: What about your net interest margins? Where do they stand now compared to 4.87% same quarter last year?

A: We have been able to maintain almost the same, there has been some basis points drop, so it (net interest margin) is about 4.7%.

Q: Can you take us through the various segments project financing advisory and how much has clocked what in the current quarter?

A: On a standalone basis, if we see that is SREI on the project finance itself, net profit before tax is Rs 65 crore against Rs 34 crore which was in the last year of the first quarter. The profit after tax is Rs 44 crore against Rs 34 crore. There has been a tax provision of Rs 21 crore in this quarter for Q1.

These are two major businesses in the company. The SREI equipment finance side, there has been a profit before tax about Rs 42 crore. The tax provision is about Rs 28 crore.

Q: There has been some talk that you may be looking to hive off your road projects business and perhaps get some kind of a financial investment going into that particular vertical, is that on the cards for SREI?

A: That we would be doing it. Some of the portfolios that we have already started in about two-three projects, so we would be looking at it. But I do not think it will be happening within this quarter. We should be able to do it within this financial year that is what we are targeting.