Srei Infra's Q2 consolidated net profit falls 32%

Bad debts were Rs 29.5 cr compared to Rs 16 cr

Srei Infrastructure Finance on Monday said its consolidated net profit for the July-September quarter fell to Rs 28 crore from Rs 41 crore a year earlier. Increase in bad debts and provisions led to a lower consolidated net profit for the company, on a year-on-year basis.

Bad debts were Rs 29.5 crore compared to Rs 16 crore, while provisions and contingencies increased to Rs 35.9 crore from Rs 17.17 crore.

The standalone profit after tax, however, increased by 91 per cent to Rs 21 crore in the July-September period, from Rs 11 crore a year ago. “The government has been initiating appropriate steps to bring the infrastructure sector on track. However, it will take some time before the momentum picks up.

The infrastructure developers and construction companies have still not seen amelioration of cash flows. We are hopeful that by the last quarter of this financial year, or the beginning of next financial year, the sector will see the much-needed growth,” Hemant Kanoria, chairman and managing director, Srei Infrastructure Finance, said in a statement.

Consolidated disbursement during the first half of this financial year was Rs 6,594 crore as compared to Rs 5,922 crore in the corresponding period of 2013-14. Srei Infrastructure Finance’s total consolidated asset under management increased to Rs 34,438 crore at the end of September this year from Rs 34,349 crore a year ago.

Consolidated total income for the quarter was at Rs  833 crore, up two per cent on a year-on-year basis.