IVRCL Q2 net loss widens to Rs 305 cr

The company said that it has agreed to sell three of its road project subsidiaries

Weighed down by the spiraling expenditure, the troubled infrastructure company IVRCL Limited has reported a steep rise in standalone net loss of Rs 305.46 crore for the quarter ended September 2015 as compared with a net loss of Rs 187.6 crore in the corresponding quarter previous year.

In a little headway on revenue front, the company has reported a 4.82 per cent increase in total revenue from operations at Rs 641 crore as compared with Rs 611.50 crore in the corresponding previous quarter. However, during the quarter under review the expenditure rose 19 per cent to Rs 815.67 crore from Rs 685.11 crore in the year ago period, far above its revenues.

Meanwhile, IVRCL said that it has agreed to sell three of its road project subsidiaries, namely Salem Toll Ways, Kumarpalyam Tollways and Chengapally Toll Ways at a loss, for a price lower than the stated value of investments and outstanding advances. "This will result into losses on divestment/diminution in value of investment aggregating to Rs 327.59 crore," it said.

In a filing the company said it has incurred losses amounting to Rs 492.64 crore during the period and accumulated losses as at September, 2015 was Rs 1,472.35 crore. On a standalone basis the company owed Rs 4,883.44 crore.