Srei Infrastructure Finance reported a lower net profit of Rs 24.60 crore for the second-quarter

KOLKATA: Srei Infrastructure Finance reported a lower net profit of Rs 24.60 crore for the second-quarter (Q2) ended September, 2011, compared to Rs 78.15 crore net in the corresponding quarter last fiscal. Operating profit during the quarter under review also dipped to Rs 112.67 crore compared to Rs 130.11 crore in the previous corresponding quarter.

Consolidated profit before tax in the said quarter declined to Rs 49.53 crore primarily due to the notional foreign exchange loss of Rs 38.95 crore during the quarter under review against Rs 111.95 crore in the corresponding quarter of last financial year.

The company, however, registered a 65% rise in its consolidated total income and 31% growth in its consolidated disbursement during the quarter ended September, 2011, to Rs 588 crore and Rs 4,401 crore respectively compared to the previous corresponding quarter.

Total consolidated asset under management at the end of September, 2011, grew by 74 % to Rs 26,001 crore from Rs 14,944 crore at the end of September, 2010.

In a media statement issued after the board meeting, Srei Infrastructure Finance chairman & managing director Hemant Kanoria said: “Profits have declined due to the sudden and sharp depreciation of rupee against dollar and also continuous increase in interest rates. As the company has taken ECB for long term, it is expected that there will no actual loss on currency fluctuation. The loss on account of foreign exchange is primarily due to provisions.”