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SREI Infrastructure Finance Ltd.

BSE: 523756 Sector: Financials
NSE: SREINFRA ISIN Code: INE872A01014
BSE 00:00 | 30 Jan 2.81 0
(0.00%)
OPEN

2.81

HIGH

2.81

LOW

2.81

NSE 00:00 | 30 Jan 2.90 0
(0.00%)
OPEN

2.90

HIGH

2.90

LOW

2.90

OPEN 2.81
PREVIOUS CLOSE 2.81
VOLUME 2484
52-Week high 6.97
52-Week low 2.68
P/E 31.22
Mkt Cap.(Rs cr) 141
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.81
CLOSE 2.81
VOLUME 2484
52-Week high 6.97
52-Week low 2.68
P/E 31.22
Mkt Cap.(Rs cr) 141
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

RIDING OUT THE STORM

Dear Shareholders

It has been appropriately said that "challenges and adversities always haveembedded in them great opportunities." Some get trapped in the negativity of theadversities and some capitalise on the unfolding opportunities. For the fi rst time inabout a century the world our country and our Company have been going through an adverseenvironment of unthinkable proportions. The last pandemic resulted in millions of deathsglobally and debilitated the lives and livelihoods of all survivors. The present COVID-19pandemic which has engulfed our planet has had a similar effect on the lives andlivelihoods of people.

The Indian economy was already slowing down before it was hit by the pandemic. Thepandemic resulted in a nationwide lockdown in March 2020 which caused almost all businessoperations to come to a grinding halt and muted consumer sentiments thereby leading to ade-growth of 24.4% in the fi rst quarter in FY 2020-21. In view of some measuresundertaken by the government and the Reserve Bank of India (RBI) the situation startedimproving towards the second half and the economy was staggering back to normalcy when thesecond wave of the pandemic struck back with more vengeance towards the end of year.

All sectors were deeply impacted by the pandemic due to continual lockdowns anddislocation but some sectors like infrastructure were ravaged. Beginning with a suddenannouncement of the lockdown triggering an unfortunate exodus of migrant labourers frominfrastructure construction sites to their homes to the closure of factories offi cesestablishments airports hotels transportation and others infrastructure activitiescame to a virtual standstill.

As the government offi ces and courts also went under lockdown and the disruptionscontinuing even now the infrastructure and construction companies have been left withconstricted cash fl ows and dislocated workers.

However we have faced many challenges over the course of the last three decadesstarting from the NBFC crisis during the 90s to the global fi nancial crisis in FY2008-09. We have always weathered through such adversities and each time we have emergedstronger and wiser as an organisation. Even though this pandemic is truly aonce-in-a-century crisis we are confi dent that this time too we will be able toprotect our business and reorganise our operations in a manner which will be benefi cialto all stakeholders. However our foremost objective during these times is to stabiliseand as soon as the pandemic and its after-effects are over we will grow again in areascongenial to the environment for infrastructure.

As a fi nancial institution we are primarily dependent on borrowings from banks andother lenders for deployment of funds towards fi nancing for asset creation for ourcustomers. However the pandemic has had an adverse effect on our customers which hasaffected their cash fl ows resulting in muted collections for us. We were spot on in ouranticipation of the dislocation of the business of our customers due to the pandemic andalso certain regulations on extending moratorium and restructuring of loans to them whichunfortunately were not extended to the NBFCs in their capacity as borrowers therebyresulting in cash fl ow mismatch. In order to address this anomaly we submitted a schemefor payment to all our creditors in an orderly fashion to the Hon'ble National Company LawTribunal in Kolkata in October 2020 and December 2020 respectively. For the fi rst timein the history of the Company a scheme for payment to creditors was submitted to theCourt for realignment of debt. We have had an impeccable track record of 31 years ofservicing interest and repayment of loans on time without even a single day's delay to allcreditors.

"It has always repaid its commercial lenders Debenture/ Bond – holders ontime and also its fi xed depositors till the time it was accepting deposits without anydelay."

Throughout the course of our journey we have always understood the importance ofevolving with the changing times and our agility in doing so has been the propeller ofgrowth for the Company. The business model of your Company has been to support theconstruction sector through mechanisation of their implementation processes by fi nancingequipment to them and to support public-private partnerships in the infrastructure sectorslike roads airports power ports healthcare and many others through innovativestructured fi nance. However since the last few years the regulations for NBFCs havebeen changed to align their operations with banks. Therefore your Company had beenrapidly reducing its infrastructure portfolio and realigning the equipment fi nancingbusiness to the extant regulations. Unfortunately the pandemic has derailed the plans toa certain extent which your Company is trying to bring back on track.

We have been working with our customers in these diffi cult times with empathy butalso facilitating them to create suffi cient liquidity so that they can run theirbusiness and simultaneously keep on paying us because if their businesses close down itwill not only affect them but will burden us with huge defaults. Many of our customershave been affected due to COVID not only business-wise but also lost their familymembers and employees. Such disruptions where the borrower is a victim of circumstancesneed to be dealt in a strategically structured manner. As liquidity is also important forus we are enabling them to generate cash fl ows.

Our employees have always been our greatest strength. We have relentlessly endeavouredto support them and their families in every possible manner. The senior employees and ustook voluntarily pay cuts and relinquishment of compensation respectively so as tosupport all other employees with an objective that we do not have to retrench duringthese diffi cult times. We also enabled them to operate from their homes and take care ofthemselves and their family members' health.

This has been the most diffi cult and challenging year in the history of the Company.We are operating in an environment which is completely adversarial in all respects but weare confi dent that we will address the issues of our creditors customers employeesshareholders and all stakeholders in an appropriate manner befi tting the long history ofthe Company. At this juncture we need the support of all of you in every possible mannerto tide over the situation.

Lastly I would like to thank all the team members for their undeterred commitment andpositive outlook in such diffi cult times. It is because of their never-say-die attitudeand fi ghting spirit that we are optimistic that we will emerge victorious through thestorm. We are focusing on creating liquidity through the huge asset base that we have andonce we are able to do so successfully we will refocus on growth of the business. Wethank all of you for your support and we look forward for the encouragement as always.

Regards
Hemant Kanoria
Chairman

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