GVK loss widens to Rs 57cr in Q2; for rescheduling power loans

This is the 8th consecutive quarter in which the company has reported loss on consolidated basis

City-based GVK Power and Infrastructure Limited today said its net loss widened to Rs 57.19 crore for the quarter ended September 30 due to high interest cost and poor power business.

This is the eighth consecutive quarter in which the company has reported loss on consolidated basis. Poor performance of the power vertical due to non-availability of natural gas forced the company to seek re-scheduling of loans to the tune of Rs 1,416 crore.

The company had reported a net loss of Rs 43.66 crore during the second quarter of the last financial year.

However, consolidated net income of the group increased by nearly 8% to Rs 691.19 crore for the quarter against Rs 640.35 crore during the same quarter last year, according to a filing with bourses.

The company has spent Rs 212.61 crore towards interest charges during the second quarter against Rs 176.25 crore during the corresponding period last year.

The company recorded Rs 96.09 crore as power segment revenue against Rs 265 crore in the second quarter of FY13 due to non-availability of gas to its power plants.

"There has been uncertainty regarding supplies/ availability of gas to power generating plants and power projects under construction of the group. The management is confident of obtaining the requisite gas allocation/recover fixed charges and accordingly believes that the investments in subsidiary amounting to Rs 1,08,323 lakh (Rs 1,083.23 crore) are recoverable in normal course of business," GVK said in the filing.

"The management is confident of receiving approvals of re-scheduling of project loans aggregating Rs 1,41,647 lakh (Rs 1416.47 crore)," it further said.

GVK said revenues from the airport vertical grew by 68% to Rs 528.85 crore in the second quarter against Rs 314.45 crore during the same period last year.

The company currently manages international airports at Mumbai and Bangaluru.