GVK Power Q3 net loss widens to Rs 57 cr

GVK's total expenditure at Rs 502 cr amounted to 77% of its net sales

GVK Power and Infrastructure's consolidated net loss sharply widened to Rs 57 crore in the October-December quarter as it was hit by decline in revenues from power sector and 30% increase in interest burden.

The flagship firm of the GVK group had reported a net loss of Rs 14.50 crore in the corresponding period of the previous fiscal.

Net sales of the Hyderabad-based infrastructure major also declined by nearly 13% to Rs 648.68 crore during the quarter as revenues from the power segment was down over 42% to Rs 237.09 crore, it said in a filing to the BSE.

The company had reported a net sales of Rs 744.55 crore in the October-December period of FY'12.

Besides, its interest outgo also went up by nearly 30% to Rs 186.52 crore in the quarter vis-a-vis Rs 143.56 crore of the same period a year ago.

GVK's total expenditure at Rs 501.75 crore amounted to 77.35% of its net sales.

Revenues from roads and airports businesses of the company, however, showed a positive growth.

While the revenues from airports increased by over 28% to Rs 347.38 crore, revenues from roads were up 9.24% at Rs 64.21 crore.

In its filing, GVK Power also said it has decided to withdraw the application, filed with the Reserve Bank of India, for grant of non-banking financial company (NBFC) status and has intimated the RBI about the move.

"Keeping the future plans of the company in view, it has been decided not to pursue the matter further for registration and withdraw the application made earlier, as the company has in intention of converting itself as NBFC. The company has intimated RBI accordingly," it said.

Shares of the company were quoting at Rs 11.90 apiece on the BSE at 1520 hours, down 3.5% from the previous close.