GVK's loss widens to Rs 281 cr in Apr-June

GVK Power & Infrastructure's consolidated net loss for the April-June quarter widened to Rs 281.34 crore mainly on account of rise in interest costs.
This is for the 11th straight quarter that the infra major has posted losses.
It had posted a net loss of Rs 30.59 crore during the quarter ending June 30, 2013.
For the period under review, the company earned consolidated revenue of Rs 712.67 crore, up from Rs 699.52 crore posted for the quarter ended June 30, 2013.
"The widened loss is mainly on account of writing (off) asset to the tune of Rs 286.78 crore on demolition of old terminal at Mumbai Airport," said GVK CFO Isaac George.

He also hinted that the current financial year could also be a stressful one and things will improve during 2015-16 provided all the plans by the company translate into reality.

"There are three or four things that have affected us. One is there is a write-off of Rs 286 crore. When the new terminal got constructed the old terminal had to be demolished and the book value of the terminal that to be written off.
"Second is higher depreciation and higher interest. These were the three major contributors for the loss, besides regular interest cost," George told reporters on the sidelines of company AGM.

The total debt of the Group is Rs 22,800 crore, majority of which is at SPV level while the debt at the holding company level is Rs 3,000 crore.
"If we go according to the plan that has been put across, in 2015-16 we will be back on track. 2014-15 will continue in the same manner. We are very confident of 2015-16 as four of our power projects will start generating revenues. Next year will be a very good year for us provided we reduced the Rs 3000 crore debt which is a matter of concern," George said.