Kolkata: Srei Infrastructure Finance Limited (Srei) is working on to increase its risk-weighted returns by way of expanding co-lending business with the banks.
The move aims at mitigating the adverse impact of economic slow-down. This strategy seems to have paid off, enabling the company being on the path of profitability albeit with a thinner margin. Srei on Monday notched up a consolidated profit after tax (PAT) of Rs 55.37 crore during the September quarter compared to Rs 110.97 crore in the year-ago quarter.
The company's consolidated PAT was at Rs 98.04 crore in the first six months of this financial year against Rs 250.52 crore in the same period last year.
"Our strategy during the quarter was to constantly increase the co-lending business along with banks, so as to augment our risk-weighted returns. In the present environment of slow economic growth we have been growing carefully, protecting our margins. We hope that by the last quarter of the year, infrastructure projects will be announced by the government in a substantial manner," said Hemant Kanoria, Chairman, Srei.
Srei Infra’s total consolidated income for the quarter stood at Rs 1,424.18 crore as against Rs 1,537.43 crore recorded during the year-ago quarter....