Srei Infrastructure Reports Large Loss On Accelerated Provisions
Abandoned construction site in India. Photographer: Prashanth Vishwanathan/Bloomberg

Srei Infrastructure Reports Large Loss On Accelerated Provisions

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Srei Infrastructure Finance Ltd on Sunday said it has posted a consolidated net loss of Rs 3,810 crore for the third quarter of the current fiscal on account of higher and accelerated provisioning as a prudent measure.

The company had reported a net profit of Rs 60 crore in the year-ago period.

Its revenue from operations for the October-December period of the current fiscal stood at Rs 490 crore as against Rs 1,450 crore in the corresponding quarter last year.

The company said its total consolidated provisioning was at Rs 3,100 crore for the period under review and the net worth stood at Rs 296 crore as of December quarter of FY21.

Also read: SREI NCD Holders Left In The Lurch After Lender Gets Court Protection

The Kolkata-based company claimed that the Covid-19 pandemic had impacted its recovery, leading to an asset- liability mismatch.

"The current financial year has been one of the most challenging years in our history of more than three decades.

"The Covid-19 induced stress on our asset quality coupled with the credit squeeze in the NBFC sector has created an unprecedented situation. As a matter of prudence...we have decided to increase our provisions significantly," Srei chairman Hemant Kanoria said.

The lender had in November 2020 said a special audit of the company and its subsidiary, Srei Equipment Finance Ltd, was undertaken by an auditor appointed by the Reserve Bank of India.

A special audit is typically undertaken if there is a sharp deterioration in the quality of a lender's book.

Also read: Srei Group Faces Uncertain Times With Rating Downgrade, RBI Audit

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