SREI Group records 85% increase in Profit After Tax in Q1
This is a 85% rise over the corresponding quarter's profit of Rs. 23.32 crore in the previous year.
Tweet-- SREI Infrastructure Finance Limited has posted an impressive consolidated profit after tax of rs. 43.20 crore for the first quarter ended June 30, 2008. This is a 85% rise over the corresponding quarter’s profit of Rs. 23.32 crore in the previous year. Country’s leading infrastructure institution in the private sector, SREI has continued to maintain the tempo of growth of the last fiscal with consolidates Assets Under Management going up to Rs. 9190.87 crore in Q1 as against Rs. 5689.72 crore achieved in the same period of the previous year resulting in an increase of 62%.
The financials reflect the company’s business post transfer of the asset finance business to its joint venture with BNP Paribas Lease Group, subsidiary of the BNP Paribas Bank.
The consolidated business done during this quarter is Rs. 1787 crore as against Rs. 1461 crore in the corresponding period last year, registering a growth of 22%. The consolidated operating profit this quarter increased by 94% to Rs. 76.84 crore from Rs. 39.65 crore in the first quarter of the last fiscal on a consolidated total income of Rs. 221.92 crore in Q1 2008 from Rs. 25.08 crore in the corresponding quarter of last year a rise of 162%.
SREI has strategically positioned itself in the Indian Infrastructure development sector to capitalize on the huge business potential in this area. “With the Public Private Partnership (PPP) route to developing key infrastructure, fast gaining ground, the company has put in place a strong team of professionals internally and a string of technical partnerships externally to make bids for large infrastructure projects in the ports, roads and power plants sectors among others,” said Mr. Sunil Kanoria, Director of the Company. “SREI and its subsidiaries are also extending its financial assistance to sectors like aviation, oil and gas, transport, telecom, industrial parks etc,” he added.
SREI has continued to utilize its long standing strategic relationships with the manufacturers as well as construction companies on a pan India basis, which has helped the company to position itself strongly in terms of its delivery.
The company’s pride project, SREI Sahaj e-Village Limited has made rapid strides in the past one year in its effort to implement the central government sponsored e-governance project. Under the National e-Governance Plan, the company has already bagged nearly 25 percent of the ambitious target of Goevrnment of India to set up a hundred thousand common service centers in rural areas. The company successfully bid for CSCs in 6 states covering nearly 1.5 lakh villages and a population size of over 21 crore.
SREI has also decided to up its ante in overseas countries. While its Russian operation has began to stabilize and hopes to cross an AUM size of 150 million USDs in a year’s time, the company is looking to replicate similar asset financing models in other target areas such as the Middle Eastern countries and South East Asia.
Announcing the results, Mr. Sunil Kanoria, Director SREI said, “We have been working continuously towards enhancement of stakeholder value. With growth in infrastructure sector in our country and SREI’s focus in this segment, we are confident of continuous growth in the future. Inspite of the present challenges in the economy, we believe that the infrastructure sector would continue to provide enough growth opportunities for the company.”