Extra provisions, prudent policy led to higher NPA provisioning, says SREI Infra

SREI Infra reported a 24 percent rise in its net profit at Rs. 144.68 crore in the quarter ended March 31, 2019, on account of strong disbursements as well as a one-off income. The company posted its net sales at Rs 1,729.94 crore in the quarter under review.

In an interview to CNBC-TV18, Hemant Kanoria, chairman, SREI Infra, discussed the Q4 earnings of the company.

On non-performing assets (NPA), Kanoria said, “If we compare QoQ, then on a consolidated basis, last year the NPA percentage gross was 7.83 percent and this quarter compared to last year is 9.76 percent. Net also from 4.34 percent it is 7.27 percent. However, because of the extra provisions and prudent policy, the NPA provisioning has gone up.”

“Last year Rs 6,500 crore was the disbursement and in Q4 it has been Rs 5,600 crore. If you look at the full year, from Rs 22,000 crore which was there last year, this year it is Rs 21,000 crore. Therefore, the disbursements have not increased, but it has reduced overall,” Kanoria added.