GVK Power posts Q3 loss at Rs 14 cr

Shortage of gas supply to its power plants, interest expenses and forex fluctuations led GVK Power and Infrastructure to net loss of Rs 14.50 crore in the third quarter ended December.

The company had made net profit of Rs 41.91 crore in the Ocotober-December quarter of 2010-11, GVK said in a statement.

The lower profit is mainly on account of interest due on loans taken for acquisition of interest in airports, GVK said. Interest expenses for the quarter stood at Rs 143.56 crore, as against Rs 64.66 crore.

"The loss during the quarter was attributable mainly to the restricted supply of gas for the power projects as a result of which the plants did not operate at full capacity, loss on account of foreign exchange fluctuations and interest cost." GVK said.

"Forex losses stood at Rs 9 crore in the third quarter against Rs 5 crore in the second quarter. It was almost negligible in Q3 FY11" Issac George, CFO, GVK group told PTI.

The company registered 62% growth in consolidated income at Rs 745 crore for the quarter ended December 31, 2011, as against Rs 461 crore in the Q3 of the previous fiscal.

The three gas based projects of GVK have recorded revenue of Rs 411.35 crore during Q3, 2011-12, as against Rs 409.24 crore for the December quarter of the previous fiscal.

Mumbai International Airport (MIAL) and Bangalore International Airport recorded revenue of Rs 332.49 crore of Rs 153.79 crore respectively, for the quarter under review.

During the quarter, GVK increased equity holding in MIAL from 37% to 50.50% and as a result, MIAL has become a subsidiary of the company.

The Group also increased its equity holding in Bangalore International Airport Ltd to 43% from 29%.

The consolidated net profit for the nine month period (April-December, 2011), net profit is Rs 82.34 crore, as against Rs 118.11 crore in the corresponding period of last fiscal.