SREI Infra - Net Jumps 98%

SREI Net Up 98% As Core Sector Booms

SREI Infrastructure Finance Ltd has posted a 98 per cent growth in net profit for the quarter ended March 31, 2007 at Rs 31.5 crore as compared to Rs 15.9 crore in the corresponding quarter previous year.

Hemant Kanoria, vice-chairman and managing director, SREI said higher business growth led to larger disbursements. "We are now in a position to increase our presence in the infrastructure sector exponentially through our recent association with BNP Paribas Leasing Group, the worldwide leasing financing arm of BNP Paribas," Kanoria said.

With the new venture the company will be able to increase assets under management to Rs 15000 crore, Kanoria said. The new venture will formed in another 90 to 120 days time. The association with BNP Paribas will help SREI Infrastructure to bid for more road, power and port projects.

The company is also thinking of increasing its portfolio into the medical equipment arena, where BNP has years of expertise. The total income for the quarter grew by 62 per cent to Rs 124.71 crore as against Rs 77.15 crore in the same period last year. For the financial year ended March 31, 2007, the company reported 64 per cent growth in the net profit at Rs 79.2 crore as compared to Rs 48.4 crore in the corresponding period previous year.

The total income grew by 76 per cent to Rs 400 crore for FY 2007 from Rs 227.2 crore for the year ended March 2006. Assets under management went up to Rs 5083 crore, crossing the one billion dollar mark, from the level of Rs 3393 crore achieved in the earlier year.

Net worth grew by 19 per cent to Rs 471 crore for the year ended March 31, 2007 from Rs 405 crore in the previous year.

Source : Business Standard

SREI Infra - French Connection

BNP Paribas Buys 50% In SREI Arm For Rs 775 Cr

BNP Paribas, France’s largest bank, will acquire 50% stake in the equipment financing business along with insurance broking (which is being spun off into a separate company) of Kolkata-based SREI Infrastructure Finance for Rs 775 crore.

The deal, the first of its kind in the country’s booming infrastructure sector, will help SREI to unlock shareholder value, Hemant Kanoria, vice chairman and managing director, SREI said. “The market capitalization of the company is around Rs 600 crore. The deal values the equipment financing business of the company at Rs 1,500 crore, two-and-a-half times of its total market capitalisation,” he said.

SREI is into project financing in addition to equipment financing, the main money spinner. It has Rs 5,000 crore of assets under its management.

Both the companies today signed an agreement to this effect at a press conference in the city. Kotak Investment Banking advised SREI on the transaction while Ambit Corporate Finance was BNP Paribas’ advisor.

BNP Paribas Lease will be the investment vehicle for the foreign bank into the company in which SREI will also chip in Rs 25 crore. SREI will get Rs 375 crore for transferring the infrastructure equipment and insurance broking businesses into a separate company.

The stock market gave a thumps-up to the deal. Share prices of SREI today rose 19.97%, the maximum permissible limit in a day, to close at Rs 71.80 on a strong Mumbai market.

SREI director Sunil Kanoria said the capital infusion would help the company to grow its project financing business as well.

The infrastructure equipment finance market stands at around Rs 14,000 crore. It is estimated to grow at a compounded annual rate of 40% to over Rs 31,000 crore in three years as the country needs to improve its inadequate roads, ports and electricity generation.

India plans to spend more than $320 billion in the next five years to build roads, ports and other infrastructure as it aims for an annual growth of 10 percent by 2012 from 9.4 percent in the year ended March 31.

Source : Business Standard

SREI Infra - To Set Up 5000 Common Service Centres

SREI Infrastructure Finance Ltd has informed BSE that in a unique move to bridge the digital divide between the rural and urban areas and in the process ensuring prompt delivery of government and other services, the West Bengal government has entered into a Master Service Agreement with the Company, the leading private sector infrastructure equipment, infrastructure projects and renewable energy products financing Company to set up nearly 5,000 common service centres (CSCs) in rural Bengal. The program has been drawn up under the aegis of the increasingly popular public-private partnership (PPP) mode.

The agreement signed between the Company and the Government of West Bengal, Panchayat and Rural Development Department on April 05, 2007, encompasses 14 districts of Darjeeling, Jalpaiguri, Cooch Behar, Uttar Dinajpur and Dakhin Dinajpur, Malda, Murshidabad, Nadia and South 24 Parganas, Purba Midnapore, Bankura, Birbhum, Howrah and Hooghly in Public Private Partnership (PPP) Mode. The agreement was signed by Shri. M N Roy - Hon'ble Principal Secretary, Panchayat & Rural Development Department, Govt of West Bengal and Dr. Sabahat Azim - Vice-President, Strategic Initiatives, of the Company. Mr. Hemant Kanoria, Vice Chairman & Managing Director, of the Company was also present on the occasion.

The initiative envisages setting up one CSC for each cluster of six villages with one being set up within each Gram Panchayat and Panchayat Samiti office premises. To start with, 4,937 such CSCs to be known as ‘Sahaj Tathya Mitra’ will be set up with Internet connectivity and will offer e-Governance Services and other commercial services to the rural populace.

The Company will manage these CSCs in collaboration with Wipro Infotech Ltd. While Wipro will be responsible for the technological inputs, the Company will chalk out the various services these CSCs will provide to the rural masses.

Under this program, a number of village level entrepreneurs (VLEs) preferably from women self-help groups (SHGs) will get direct livelihood while rest of the population will get access to e-Governance and Internet related services at its doorstep at a very nominal rate. The program is aimed at improving the standard of living in rural Bengal.

The feather in the cap undoubtedly goes to West Bengal, which has become the first state off the bloc in signing this Master Agreement, which is a part of the National e-Governance Plan. These CSCs will become operational in less than twelve months.

These CSCs have the potential of developing as revenue neutral tools in the hands of other Companies and service providers keen to access rural markets. The IT-enabled e-kiosks will also be developed to provide information and services for meeting rural needs in relation to agriculture, education, vocational training, health and hygiene.

Incidentally, the Company bid for all eight zones in the State comprising 18 districts for a total of 6797 CSCs and bagged six of those against stiff competition from Companies like Reliance Communication, 3i-Infotech and Wire & Wireless India Ltd.

Source : Bombay Stock Exchange

SREI Infra - Way To Go

SREI Infrastructure Conducts Business Over Rs 2500 Million In 4 Days At IMME '06

SREI Infrastructure Finance Ltd has informed BSE that the Company has pulled off a coup of sorts, conducting business of nearly Rs 2790 million at the 4-day IMME 2006 in Kolkata late last week.

According to key company officials, this is likely to increase once all the figures now pouring in from different parts of the country are collated. Apart from the on-the-spot businesses, the Company had initiated a move to round up opportunities from other parts as well through a system of video conferencing with prospective customers.

The Company success is further accentuated by the company’s strategic tie-up with 11 top equipment manufacturers. Market leaders such and L&T Komatsu, Volvo, Caterpillar, JCB and several others have all entered into an understanding, whereby SREI finances the purchase of all equipments sold by these companies. "We are constantly innovating to meet the specific requirements of customers", officials explained.

The biggest draw at IMME '06 was the Money Bag scheme 2006 which proved to be a winner all the way. The scheme attracted a large number of existing as well as new customers. More than 50% of the total booty was on account of this scheme alone. Money Bag offers a lease period of seven years, thereby proposing a unique option in the equipment leasing industry.

The SREI Lotto scheme also proved to be immensely popular. With interest rates as low as 5.88% there was hectic activity at this counter, which was operated in real time to outstation customers spread across the country.

Another scheme SREI Jump Start also proved attractive to sections of customers and borrowers looking for 100% finance on margins as low as 10%. This financing scheme however, is available to equipment from select manufacturers only.

Speaking on the current strategy of the company, Mr. K K Mohanty, Executive Director of the Company, explained, "We have been able to connect successfully with the equipment manufacturers on the one hand and the buyers / infrastructure developers on the other. The key to our success is the close integration of the processes that begins with the planning of a project to the purchase of equipment, to the financial completion."