Srei Q1 net rises 171% on lower expenses, higher operating income

Infrastructure finance company's consolidated total income during three months was at Rs 786.7 crore, up only 3% on a y-on-y basis

Srei Infrastructure Finance today said its consolidated profit after tax for the quarter ended June, 2013 increased by 171% from a year earlier to Rs 47.2 crore as it cut expenses and earned more income from operations.

"The first quarter of this financial year has indeed been challenging. Due to the concerted efforts of the management team, we have had a higher profit this quarter and will continue our endeavour towards better results. In spite of the infrastructure sector and the Indian economy not doing well, we are hopeful that it would revive soon," Hemant Kanoria, chairman and managing director of Srei Infrastructure Finance, said in a statement.

The infrastructure finance company's consolidated total income during the three months was at Rs 786.7 crore, up only 3% on a year-on-year basis. Decline in other operating income capped the growth in the company's total income. Srei's income from operations in April-June period was up 5.8% from a year earlier.

The company, however, reduced its total expenses by over 15%, which aided its earnings growth.

"We are always in a state of preparedness to grow our business and enhance shareholder value as soon as we see the first sign of growth. We have also been requesting the government to allow Indian infrastructure companies to get listed overseas so that long-term equity funds can flow into the country, thereby relieving the pressure on rupee," Kanoria said.

Srei's consolidated disbursements were Rs 3,520.5 crore, while its consolidated asset under management was Rs 34,483 crore at the end of the first quarter of this financial year. The year-on-year growth in asset under management was only four%, whereas disbursements declined by five% from a year ago.

Shares of Srei today ended at Rs 21.15 on the National Stock Exchange (NSE), up 2.2% from previous close.