Srei Infra Finance reports 91% drop in Q2 net profit at Rs 4.72 crore
Total consolidated income of the financing company fell to Rs 1,182.21 crore during the July-September period of 2020-21 as against Rs 1,424.18 crore in the same period of 2019-20, it said in a regulatory filing.
November 09, 2020 / 10:58 PM IST
Srei Infrastructure Finance Ltd (Srei) on Monday reported a drop of 91.5 percent in its consolidated net profit at Rs 4.72 crore in the second quarter ended September 2020. It had posted a net profit of Rs 55.37 crore in the year-ago period. Sequentially, the profit was also down from Rs 23.01 crore posted in the June quarter of the current fiscal year.
Total consolidated income of the financing company fell to Rs 1,182.21 crore during the July-September period of 2020-21 as against Rs 1,424.18 crore in the same period of 2019-20, it said in a regulatory filing. Consolidated assets under management stood at Rs 43,339 crore as on September 30, 2020 as compared to Rs 44,213 crore as on June 20, 2020, it said in a release.
Srei 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, he said.
"The immediate need of the hour is for state governments, the central government and all public sector undertakings to release the dues of the contractors/construction companies, and the judiciary to issue appropriate orders that when an arbitration award is against a government organisation or the government, it should not be 'stayed'. "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 said.
Srei said the company has been focusing on the equipment finance business and it will continue to be its area of focus going forward. Stock of the company closed at Rs 6.85 apiece on BSE, up 7.37 percent from previous close.