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SREI Infrastructure Finance Ltd.

BSE: 523756 Sector: Financials
NSE: SREINFRA ISIN Code: INE872A01014
BSE 00:00 | 03 Aug 10.60 -0.47
(-4.25%)
OPEN

11.05

HIGH

11.23

LOW

10.55

NSE 00:00 | 03 Aug 10.55 -0.50
(-4.52%)
OPEN

10.90

HIGH

11.30

LOW

10.50

OPEN 11.05
PREVIOUS CLOSE 11.07
VOLUME 297660
52-Week high 18.39
52-Week low 5.01
P/E 3.33
Mkt Cap.(Rs cr) 533
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.05
CLOSE 11.07
VOLUME 297660
52-Week high 18.39
52-Week low 5.01
P/E 3.33
Mkt Cap.(Rs cr) 533
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SREI Infrastructure Finance Ltd. (SREINFRA) - Chairman Speech

Company chairman speech

The year under review has been a very challenging one for the NonBanking Financial Sector in India especially after the IL&FS episode in September2018. The infrastructure sector in India has also been facing challenging times. But yourCompany has strongly withstood the storms and is well ensconced in its re-engineeredfinancing activities. The Indian economy has slowed down in comparison to the previousyears and also there has been a slowdown globally. The General Elections in India just gotover and the National Democratic Alliance (NDA) government is back with a strongermandate for the next five years which we all hope will enable them to build a strongerIndia in all respects.

Economy and business outlook

During the year under review protectionism has been on the riseacross the globe. Most developed nations are finding it increasingly difficult to propelgrowth. On top of that the tariff-related trade tension between the two largest economieshas only added to the sense of uncertainty. Until and unless the leaders of these twosuper-powers sit across the table to iron out the issues any escalation in their tradeconflict can have far reaching impact on other economies and can drag down global growthfurther. In fact the US has not restricted its tariff war against China only severalother trade partners including India are now being targeted. This can have a majorimpact on commodity prices as well. With international funding agencies like the WorldBank and International Monetary Fund forecasting slower growth in this year and the nextthe only positive fallout from this is perhaps the change in stance amongst the centralbanks in the developed nations. While they had earlier embarked on a process of unwindingtheir monetary expansion programmes the recent developments have made them to pause.

On the domestic front a marked slowdown is visible in capitalgoods formation and the manufacturing sector. Lower economic activity is getting reflectedin lower tax collections as well. The government sensing the seriousness of thesituation has already initiated discussions with the various stakeholders and we expectswift action to address all the concern areas. An infrastructure-led pump-priming of theeconomy looks very much on the cards. Right now creating employment is one of the toppriorities for the government and there can be no better way to do this than by steppingup infrastructure creation. Jobs for the semi-skilled and unskilled people will be createdin large numbers.

During the year under review the sheen on the India Growth Storyremained intact. India once again moved up in the World Bank’s ‘Ease of DoingBusiness’ survey. Progress on the Insolvency & Bankruptcy Code (IBC) has beenslower than expected but it has nonetheless ushered in a healthy credit culture and thiswill reap rich dividends in terms of attracting more investments to India. The roll-out ofthe Goods & Services Tax (GST) has considerably expanded the tax base formalisedlarger segments of the economy and heralded a transparent way of doing business. Furtherrationalisation of the GST tax rates will provide a huge boost to entrepreneurship.

The cumulative impact of all these has been India’s risingappeal as an investment destination amidst a scenario of global slowdown. India recorded atotal FDI (equity + re-invested earnings + other capital) of USD 64.4 billion during theyear under review up from USD 61 billion in 2017-18. For the first time India’stotal exports (goods and services combined) surpassed the USD 500 billion mark. With aforeign exchange reserve of more than USD 420 billion India is prepared to weather anyprobable global turbulence.

The Union Budget 2019-20 to be presented in July is likely toprovide clarity on the direction of reforms that this government will undertake. If theInterim Budget 2019-20 was any indication we feel this government will focus more on thesocial sector and in particular will aim to uplift the standard of living of the ruralmasses. Going forward we foresee a major push in the construction of roads and highwaysand rural infrastructure. The forecast of a near-normal monsoon and government’ssteps to spur the rural economy will trigger brisk activity in the agrarian sector.

Company outlook

During the year under review your

Company posted a consolidated income of Rs. 6470 crore (an increase of20 per cent over last fiscal’s Rs. 5400 crore) and registered a net profit of Rs.487 crore (a 29 per cent jump over last year’s Rs. 377 crore). Your Company’sconsolidated disbursements stood at

H E M A N T K A N O R I A

Chairman

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