Srei Infrastructure Finance Limited has reported a consolidated profit after tax (PAT) of Rs. 139.55 crore during the quarter ended June 30, 2018, as compared to Rs.65.15 crore during the corresponding quarter of last year. In line with the direction from the Ministry of Corporate Affairs, Srei has adopted Indian Accounting Standards (IND AS) with effect from April 1, 2018. Financial results for the quarter ended June 30, 2018, are prepared and reported in compliance with IND AS requirements.
Commenting on the results, Hemant Kanoria, Chairman and Managing Director, Srei, said, “Overall there has been improvement in the business as projected earlier. In the first quarter of the current financial year, there has been growth in disbursements and profit. There is a general feeling of shyness towards the infrastructure sector by banks and non-banking financial institutions. But our focus has been on the infrastructure industry and we have retained our leadership position in the sector. We believe that we will be in a position to perform better during this financial year compared to the previous one.”
Under IND AS, provisioning on loans is done as per Expected Credit Loss (ECL) methodology based on three stages, being, Performing Assets (Stage 1), Under-Performing Assets (Stage 2) or Non – Performing Assets (Stage 3). Stage 3 assets are restricted not just to NPAs (Above 90 DPD) but also include AAD, NCLT and Restructured Assets (S4A, CDR, SDR). The company has provided accelerated provisioning on loans and investments under IND AS which has been adjusted against opening reserves during IND AS transition. Currently, the company has accomplished adequate provisioning and this quarter’s result reflects a steady state profitability and improved ROE. The standalone PAT was at Rs. 30.18 crore during the first three months of this financial year as compared to Rs. 21.05 crore in the corresponding period of last year.