Srei reports 46% decline in net profit at Rs 23 cr for June quarter

Srei Infrastructure Finance (Srei) on Monday reported over 46 per cent decline in its consolidated net profit at Rs 23.01 crore for the quarter ended June 2020.

The company’s net profit stood at Rs 42.67 crore during the same quarter a year ago.

Total income also declined to Rs 1,214.45 crore during April-June period of 2020-21 from Rs 1,579.59 crore in the same quarter of 2019-20, Srei said in a regulatory filing.

“The continuing spate of the pandemic has disrupted businesses and dislocated people. It was expected that the normalcy will resume by August, however, now it seems that this spell will go on till December, for sure,” Srei Chairman Hemant Kanoria said.

“It is an undeniable fact that the economy has been severely affected, especially the MSMEs and the infrastructure sector,” he added.

Despite various solutions being worked out by the Reserve Bank and government, it will definitely take time for any of them to have the desired effect, he said.

“It is, therefore, difficult to project any future plans with certainty. The strategy of our company, at present, is to alleviate pains of our customers, manage liquidity and focus on the core business of equipment finance, while improving efficiency and rationalising cost,” Kanoria said.

“We have recently raised funds from KfW IPEX-Bank of Germany, demonstrating our ability to raise resources from reputed international investors and global development finance institutions,” he added.

The company will continue to explore opportunities that will help it sustain its business growth and create value for all its stakeholders, Kanoria said.

Shares of Srei on Monday closed 1.50 per cent lower at Rs 7.21 apiece on the BSE.