GVK Power & Infra spurts on environmental nod for Kevin's Corner Project

GVK Power & Infrastructure spurted 11.61% to Rs 8.17 at 15:07 IST on BSE after the company said that the Federal Government has decided to grant environmental approval for the company's Kevin's Corner Project in Queensland.

The announcement was made during trading hours today, 1 November 2013.

Meanwhile, the S&P BSE Sensex was up 39.54 points or 0.19% at 21,204.06.

On BSE, 28.42 lakh shares were traded in the counter as against average daily volume of 7.78 lakh shares in the past one quarter.

The stock hit a high of Rs 8.50 and a low of Rs 7.26 so far during the day. The stock had hit a 52-week high of Rs 15.75 on 9 January 2013. The stock had hit a 52-week low of Rs 5.52 on 6 August 2013.

The stock had outperformed the market over the past one month till 31 October 2013, surging 16.75% as compared to the Sensex's 9.21% rise. The scrip had also outperformed the market in the past one quarter, jumping 23.65% compared with the Sensex's 9.4% rise.

The small-cap company has equity capital of Rs 157.92 crore. Face value per share is Re 1.

In late 2011, GVK had acquired a 100% stake in the Kevin's Corner Project in Queensland from Hancock Prospecting Pty. and a 79% stake in the Alpha Coal and Alpha West Coal projects.

The Kevin's Corner Project is an advanced coal project and has a mine life in excess of 30 years with a capacity to produce up to 30 million tonne per annum of export quality thermal coal. Construction is expected to start on the Kevin's Corner Project in 2015 with first coal being produced in 2018, GVK said in a statement.

Dr. GVK Reddy, Founder CMD, GVK Power & Infrastructure said, "We commend the Federal Government on its thorough environmental assessment process and its decision to approve this significant project that will create immense employment opportunities. This approval comes as a major milestone towards our goal of becoming the premier and most reliable coal supplier to the world thus enabling better lives".

Speaking on the development, Mr. G V Sanjay Reddy, Vice Chairman, GVK Power & Infrastructure said, "We welcome the Federal Government's approval. Ultimately, we believe the overall assessment process has resulted in best practice environmental protection outcomes, a positive sign for future investments and job creation, which we support completely. As coal developers, we are uniquely placed, as we possess the Federal and State Government approvals that integrate our mine, rail and port projects that will definitely help in the opening up of the Galilee Basin".

On a consolidated basis, GVK Power & Infrastructure reported a net loss of Rs 30.59 crore in Q1 June 2013, lower than the net loss of Rs 64.30 crore in Q1 June 2012. Net sales fell 14.5% to Rs 699.52 crore in Q1 June 2013 over Q1 June 2012.

GVK is a leading Indian conglomerate with presence across energy, resources, airports, transportation, hospitality and life sciences sectors.

Powered by Capital Market - Live News