Thursday, October 30, 2008

SREI Infra Q2 falls 21 pct on interest costs, taxes

Private sector lender for infrastructure projects and equipment SREI Infrastructure Finance Ltd on Thursday said July-September profit fell 21 percent on higher interest costs and taxes.

Net profit for the quarter fell to 261.8 million rupees from 331.8 million rupees in the same period a year ago even as total income rose to 2.43 billion rupees from 1.62 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 1.17 billion rupees from 884.5 million, the company said in a statement.

The firm's tax expenses also rose to 1.37 billion rupees, from 47.7 million rupees on higher provisioning for deferred taxes, Kanoria said.

During the quarter, it disbursed loans worth 25 billion rupees, up from 15 billion rupees 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 percent up at 46.90 rupees in the Mumbai market on Wednesday. The stock market was closed on Thursday for a festival holiday.

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