Srei to focus on IT, healthcare equipment financing

May 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).

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