Kolkata, Nov 6 (IANS) Srei Equipment Finance – a 50:50 joint venture company between Srei Infrastructure Finance and BNP Paribas Lease Group – on Friday said it is aiming to double its balance sheet size in the next three years.
It said increased momentum in IT, tractors and various construction and roadworks equipment will help it to achieve the target.
From January till September, it has disbursed loans worth Rs. 5,493 crore.
Disbursements during the second quarter of this financial year grew by 27 percent at Rs. 2,224 crore as compared to Rs.1,749 crore during the first.
Its net profit has also surged by 21 percent at Rs. 27.62 crore during the second quarter of the current fiscal as against Rs. 22.85 crore in the first quarter.
The financing company’s assets under management also grew by 0.44 percent at Rs. 18,747 crore during the quarter ended September 30 this year as compared to Rs. 18,665 crore during the quarter ended June 30.
“Since the last two years, we have diversified our financing portfolio to IT, healthcare, rural equipment and used constructions equipment. Twenty percent of our revenue in the second quarter came in from the new vertical,” company CEO D. K. Vyas told media persons here.
He said with excavators sales witnessing a strong growth of 20 percent each month backed by the increased sale of heavy trucks, the company is confident grow its revenue from this segment.
“Five hundred thousand tractors are expected to be sold next year with IT spends poised to touch $70 billion. We also expect to augment our IT and rural equipment financing business from these sectors apart from road equipments,” he said.
This year, the company has raised funds in excess of Rs.760 crore and hopes to raise more funds once the Reserve Bank of India’s guidelines on overseas rupee loans come out.
It has a present market share of 30 percent in equipment financing segment.