SREI Infra Q2 falls 21% on interest costs, taxes

SREI Infra Q2 falls 21% on interest costs, taxes

Kolkata: Private sector lender for infrastructure projects and equipment SREI Infrastructure Finance Ltd said that its July-September profit fell 21% on higher interest costs and taxes.

Net profit for the quarter fell to Rs261.8 million from Rs331.8 million in the same period a year ago even as total income rose to Rs2.43 billion from Rs1.62 billion a year ago.

“Higher borrowing costs from banks have impacted profits," Chairman and Managing Director Hemant Kanoria told reporters in a news conference. Financial expenses rose to Rs1.17 billion from Rs884.5 million, the company said in a statement.

“The firm’s tax expenses also rose to Rs1.37 billion, from Rs47.7 million on higher provisioning for deferred taxes," Kanoria said.

During the quarter, it disbursed loans worth Rs25 billion, up from Rs15 billion in the same period a year ago.

“We do not see any slowdown in infrastructure investments and expect lending to the sector to grow in the next quarter," Kanoria said without elaborating.

Shares in the company ended 7.08% up at Rs46.90 in the Mumbai market on Wednesday.