GVK Power Loses Steam on High Interest Costs 11 Qtrs in a Row
By ENS Economic Bureau | Published: 14th August 2014 06:00 AM |
HYDERABAD: Owing to high interest costs, infrastructure firm GVK Power & Infrastructure continued to post loss for the 11th straight quarter. For the quarter ended June 2014, GVK’s consolidated net loss widened to Rs 281.34 crore as against Rs 30.59 crore during the same period a year ago.
The company’s consolidated revenue, however, rose to Rs 712.67 crore during the quarter under review, up from Rs 699.52 crore posted for the quarter ended June 30, 2013.
The company’s interest cost went up to Rs 320.97 crore against Rs 188.43 crore in the previous quarter a year ago.
According to Issac George, CFO, GVK, the current fiscal could be stressful and things were likely to improve only during 2015-16.
The company currently has a debt of Rs 22,800 crore.
GVK’s Mumbai International Airport (MIAL) registered a loss of Rs 244.54 crore in the first quarter of 2014 as against a profit of Rs 93.56 crore last fiscal.
“The loss in MIAL is attributable to the one-time charge of Rs 286.78 crore, which is the written down value of the old terminal T2 that has been demolished,” GVK said in a statement.
Similarly, Bangalore International Airport Limited (BIAL) recorded a loss of Rs 30.05 crore for the same period as against the profit of Rs 64.97 crore last fiscal. “The loss in BIAL is attributable to higher financial expenses (Rs 53.35 crore) and higher depreciation (Rs 55.62 crore) on account of the capitalisation of the expansion project (upgradation of the Terminal and facilities),” it added.
Meanwhile, the three gas-based projects — 464 MW GVK Gautami Power Limited and 235 MW Phase I and 220 MW Phase II projects of GVK Industries have recorded revenue of Rs 74.16 crore for the period as compared to Rs 86.62 crore for the corresponding quarter of the previous year.
“This reduction is mainly due to stoppage of gas supply from KG basin to two gas plants and reduced gas supply to one plant,” GVK said.