Gammon Infra Q3 net loss at Rs 10.26 cr

Gammon Infrastructure Projects today reported a consolidated loss of Rs 10.26 crore for the quarter ended December 31, 2015.
The infrastructure firm had clocked a net profit of Rs 5.98 crore in the October-December quarter of 2014-15.
Its total income increased to Rs 262.06 crore for the quarter under review as against Rs 253.07 in the corresponding period of the previous fiscal.
Total expenses of the firm rose to Rs 206.99 crore during the quarter over Rs 175.03 crore in the same quarter of the previous fiscal.
The company said during the previous quarter it has signed share purchase agreement for divesting nine of its project companies to the consortium comprising funds managed by Brookfield Asset Management and its affiliates and Core Infrastructure India Fund under the name BIF India Holdings.

"The agreement interalia contemplates as conditions precedent certain waivers/ write off of intergroup balances, modification/cancellation of certain existing O&M agreements and other obligations on the company. The cumulative quantifiable effect of adjustment upto December 31, 2015 would result in reduction of profit to be recognised on completion of the transaction by an amount of approx Rs 16.73 crore," the filing said.

Gammon Infrastructure in August announced stake sale in 9 projects valued at Rs 6,750 crore to Brookfield and Core Infra India Fund, a deal that will fetch Rs 563 crore as well as reduce its debt by Rs 1,718 crore.

The transaction, one of the largest asset sales at one go in the Indian infrastructure space, came barely days after government allowed highways developers to divest 100 per cent equity in projects two years after the completion by making additional funds available for investment in projects.
Shares of the company closed at Rs 4.30 apiece on the BSE, down 6.52 per cent from the previous close.