The share price of SREI Infrastructure Finance fell over 15 percent after the firm said that the Reserve Bank of India would be conducting a special audit of the company and its subsidiary. In the last year as well, the stock has fallen over 23 per cent. The sentiment was further weighed after Brickwork ratings downgraded long-term ratings of the firm to BB from BBB.
“We would like to inform you that a special audit of the SREI Equipment Finance Limited is being undertaken by an auditor appointed by Reserve Bank of India (RBI) in the exercise of its powers under Section 45 MA(3) of the RBI Act, 1934,” the company said in a BSE filing.
“Brickwork Ratings India Pvt Ltd has revised the ratings for Perpetual Debt Instrument aggregating to Rs 10 crore of the company,” SREI Infrastructure Finance said in a regulatory filing.
SREI Infrastructure Finance reported a drop of 91.5 per cent in its consolidated net profit at Rs 4.72 crore in the second quarter ended September 2020. It had posted a net profit of Rs 55.37 crore in the year-ago period. Sequentially, the profit was also down from Rs 23.01 crore posted in the June quarter of the current fiscal year.
Total consolidated income of the financing company fell to Rs 1,182.21 crore during the July-September period of 2020-21. Consolidated assets under management stood at Rs 43,339 crore on September 30, 2020, it added.