GVK September Quarter Loss Widens to Rs 235 Crore

New Delhi: GVK Power & Infrastructure on Friday said that its consolidated net loss widened to Rs 235.57 crore for the quarter ended September 2014.

The company had posted a net loss of Rs 57.19 crore for the corresponding quarter of the previous fiscal year.

Income from operations rose marginally to Rs 698.76 crore during the quarter under review from Rs 691.91 crore in the corresponding quarter of 2013-14, the company said in a filing to the BSE.

GVK Power attributed the loss to low power generation at its three plants due to stoppage of gas supply.

Also, interest cost on the borrowing for the acquisition of stake in Mumbai and Bangalore Airport also had an impact on the consolidated profit, the company said.

Interest cost rose to Rs 364.55 crore during the second quarter of this fiscal year from Rs 212.61 crore in the year-ago period, according to the BSE filing.

The company has presence in various sectors such as energy, resources, airports and transportation.

Mumbai International Airport Pvt Ltd recorded revenue of Rs 580.67 crore for the quarter ended September 30, 2014 as against Rs 523.07 crore for the corresponding quarter of the previous year.

GVK Jaipur Expressway Pvt Ltd recorded revenue of Rs 73.88 crore for the quarter July-September quarter, as against Rs 67.80 crore for the same quarter of the previous year.

The three gas-based projects i.e. 464 MW GVK Gautami Power Ltd and 235 MW Phase I and 220 MW Phase II projects of GVK Industries Ltd recorded revenue of Rs 32.08 crore for the September quarter, above Rs 96.09 crore reported for the corresponding quarter a year ago.

"This reduction is mainly due to stoppage of gas supply from KG basin to two gas plants and temporary stoppage of gas supply to one plant," it said.

The company further said that the Supreme Court in September quashed coal blocks of various companies, including the mine allotted to a subsidiary of GVK Energy Ltd.

"The company further said that the management believes that the subsidiary will be appropriately reimbursed for cancelled coal mine. Management is also mulling various options for incoming power project which was linked to cancelled coal mine like bidding for new mines and obtaining coal linkage."

The management believes that the aforementioned subsidiary company will continue to be in operation despite losses and uncertainties, it said.

Shares in the company, on Friday, ended at Rs 12.21 apiece on the BSE, up 3.30 per cent from the previous close.