Srei to focus on IT, healthcare equipment financingMay 14th, 2012 - 10:52 pm ICT by IANS
Kolkata, May 14 (IANS) With the country’s power and telecom sectors experiencing many challenges, infrastructure and construction equipment financing non-banking finance company (NBFC) Srei Infrastructure Finance Ltd. Monday said it would attach greater priority to IT and healthcare equipment financing this fiscal.
The company plans a 25 percent growth in disbursements in this high-yield equipment business.
“IT and healthcare equipment finances will get greater priority this fiscal. Last (fiscal) year, we did Rs.1,400 crore (Rs.14 billion) disbursement in this two segments. We expect to grow this year by 20 percent to 25 percent over this,” managing director Hemant Kanoria said here.
Kanoria said the Kolkata-based company, which clocked a disbursement of Rs.18,600 crore (Rs.186 billion) in the last financial year, would be looking into IT and healthcare equipment financing along with its core business, infrastructure finance and infrastructure projects, in order to mitigate overall risk.
“Our emphasis on infrastructure finance and infrastructure projects will remain. But simultaneously, we are also growing in other areas to mitigate the risk. That is why we have looked at IT equipment finance and healthcare equipment finance. Now, we are also looking at equipment in rural and agricultural sectors only with an intension to broadbase our portfolio,” he said.
The company, whose profits had been under stress, primarily due to steep depreciation of rupee and multiple interest hikes, started its IT and healthcare equipment business only in 2011-12.
Srei has also decided to take a cautious view of the year ahead as its net profit during the quarter ending March 31, 2012 has come down to Rs.13.21 crore against Rs.14.20 crore for the corresponding period the previous fiscal.
Total income during the fourth quarter increased to Rs 653.36 crore against Rs.627.75 crore for the similar period the previous fiscal.
The firm said greater emphasis on the high-yield equipment financing business like IT and healthcare would also help it improve its net interest margin (NIM).
- Rs.2 bn equity investment in Srei Equipment Finance okayed - Aug 11, 2012
- Srei's 2010-11 net profit up by 15 percent - May 19, 2011
- Srei Infra's Q3 net slips by 51.8 percent - Feb 03, 2012
- SREI Infra to integrate Quippo with self - Jan 29, 2010
- Magma Fincorp Q1 net jumps 93 percent - Jul 12, 2012
- Srei posts Rs.26.58 crore net profit for second quarter - Oct 26, 2009
- Cholamandalam Investment posts higher profit - Jan 27, 2011
- Srei aims to broadbase borrowing options - Jan 07, 2012
- Magma Fincorp net rises 161 percent in third quarter - Jan 12, 2010
- Magma's Q2 income up 27 percent - Oct 17, 2011
- Srei raises benchmark rate by 100 basis points - Oct 06, 2010
- Magma Fincorp posts Rs.26.46 crore Q4 net profit - May 31, 2010
- Volvo ropes in Srei BNP Paribas to offer finance - May 11, 2011
- Emami to make Rs.1.25 billion capital expenditure - Aug 08, 2012
- Srei Equipment Finance plans to disburse Rs.7,500 crore - Oct 06, 2009
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