News Detail

• SREI Infrastructure is up nearly 6.5% intra-day. CNBC-TV18 catches up with Hemant Kanoria, chairman and managing director of SREI Infrastructure Finance to get the latest with his company.He says that the slowing trend in infrastructure space is not likely to affect his company and SREI Infrastructure Finance is set to clock same growth as previous quarter going ahead too. “There have been mark-to-market losses on account of rupee depreciation, but it has been provisional, and hopefully will not figure in the coming quarter,” he says.
• Q: What sort of impact are you seeing from the movement in the rupee, and what could we expect in Q3 from you?
• A; I think the rupee depreciation has definitely had an impact on our second quarter results, and this quarter also we will have some effect of that because there is a mark-to-market loss which will be there. Overall, I do not see the rupee depreciating much further; the government has also realized that it will have an inflationary effect if the rupee depreciates further. So I think that should get curtailed here.Where the results of the company is concerned, there has been a good growth and we hope to have the same growth in the next quarter also. On the profitability side too we are not very much worried because it is going on track in spite of the mark-to-market losses.These losses are only provisional because we do not see it having an effect. Actual losses will not be there because these payments have to be made over a period of ten years, so it is just a provision that we have made now.
• Overall, we are quite sanguine and the company is on the right track though opportunities are there in spite of the fact that there is a little bit of a tardiness in the movement of infrastructure. We are hopeful that we should be having a good growth.
• Q: Have you seen any kind of pressure on account of the asset quality in the past two months?
• A: We don’t see much of pressure because our provisioning norms are very stringent. We do these provisioning so that it does not result in a loss. Nonetheless, due to our conservative policy, there has been a little bit of an increase in NPAs, but overall, there is nothing to get concerned about. Right in the beginning itself, when we do the financing, our quality of portfolio was good, we got a lot of risk assessment done and took actions for mitigation of those particular risks. Overall, we don’t see any deterioration.
• Q: Your consolidated disbursements were up around 45% in the first half of FY12, what are you factoring in for the entire year?
• A: For the entire year we see that we should have about 35-40% of growth.
• Q: And segment-wise since project financing seems to take up the bulk in terms of a percentage growth for you?
• A: It is very difficult to see in the next six months what would be there as a ratio on the project and the equipment finance. Overall, taking both together, we should have a steady growth and we are not very worried about it. There maybe a little percentage of projection as maybe higher than equipment finance or vise-a-versa; that we have to see it panning out, and this quarter also, we still have 30-45 days to go.
• Q: You have indicated earlier that you are in the process and evaluating any kind of a tower buyout, perhaps of GTL Infra or maybe in Reliance Infratel. Any progress which has been made on that front?
• A: Not at present. I don’t think there is any plan for either GTL or Reliance to sell, we are not aware about any such deal at this juncture.

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