SREI Infrastructure, the stock year to date has outperformed with gain of around 53 percent. To discuss the outlook going forward and other happenings in the company, CNBC-TV18 spoke to Sunil Kanoria, Vice Chairman, SREI Infra.
The company has signed a memorandum of understanding (MoU) with a Russian State Development Institution, Vnesheconmbank for USD 200 million Innovation Fund.
Kanoria said the above development is in regards with the company's fund management business, which as of now is a small business. With the above fund they will manage investments into both the countries and will manage to earn fee income.
The company manages third party funds, he said.
The money into the Innovation fund will come from the Russian company and some will be raised from third parties as well and gradually built up the fund management business, said Kanoria.
Talking about the core infrastructure business, he said in the last one year growth has started to come back. So, gradually there has been a reduction in their non-performing loans (NPLs) on a quarter-to-quarter basis for the company.
There are lot of Engineering, Procurement, and Construction (EPC) projects coming from government, which is increasing the need for equipment. Moreover, road sector projects too have seen a pick up and majority of equipment is going there, said Kanoria.
Irrigation is also seeing good traction along with small improvement in mining sector, he said, adding that in the last one-two months there has been some movement in the railway sector.
He also confirmed that Bharat Road Network, a company promoted by SREI would come out with an IPO in the near future. The process is on, he said.
For entire discussion, watch video
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