Srei profits up 28%

Srei International Finance Limited (SREI), which finances infrastructure equipment and projects, registered 28 per cent growth in profit before tax in the third quarter (Q3) ended December 31, 2003, at Rs 17.44 crore, from Rs 13.63 crore in Q3 ending 2002.

Hemant Kanoria, managing director of SREI, said the company's thrust on infrastructure projects had led to continuous growth, steady profits, good asset performance and low NPA.

He added, "SREI will focus in the infrastructure sector. The growth opportunity in this area is immense and over a period of 14 years, SREI has been able to develop expertise in understanding construction and infrastructure segments."

SREI's infrastructure project financing wing bagged mandates like the urban expressway project on Delhi-Gurgaon stretch, a wind power project in Tamil Nadu and a demand-side management project for a power utility company in West Bengal.

In renewable energy, its started financing solar water heaters and other devices mainly in Tamil Nadu and Karnataka. In financing of infrastructure construction equipment, SREI was one of the leading players, the company said.

A subsidiary arm, SREI Insurance Services Limited, was granted in-principle licence by the Insurance Regulatory and Development Authority (IRDA) to offer broking services in life, general and re-insurance areas.

The International Finance Corporation (IFC) of Washington, DEG, a wholly owned financial institution of the German government, and FMO, a financial institution owned by the Netherlands government, own about 20 per cent of SREI's equity.

SREI also has participation from Indian banks, mutual funds, NRIs and overseas corporate bodies by way of investments and loans. The Belgium Investment Overseas (BIO) has mezzanine capital.