GVK group’s holding company GVK Power and Infrastructure (GVK PIL) on Friday reported a consolidated net loss of Rs 304.42 crore for the year ended March 31. It had registered a loss of Rs 537.37 crore in the previous year.
The decline was due to the absence of losses from jointly controlled entities in the year under review as compared to the previous year, the company’s statement stated. GVK group has been presenting the consolidated numbers only at the end of financial year with the approval of the Ministry of Corporate Affairs.
Its standalone net profit in the March quarter nearly trebled to Rs 69.38 crore on the back of higher revenues.
The company’s consolidated total income declined 10.36 per cent to Rs 4,363.10 crore in FY19 from Rs 4,867.43 crore in the previous year. The expenditure remained almost flat. Airports business has contributed Rs 3,699.99 crore to the top-line of the company, forming 85 per cent of the total income, during the year. The remaining income came from the roads division.
Referring to its proposed divestment options in the holding company of the Mumbai International Airport (MIAL), GVK in a filing said it had not considered the airport vertical as ‘held for sale’ asset at this stage as it was yet to reach a firm purchase agreement with a potential investor.
“Shares of the airport vertical are pledged with various lenders, and the management is yet to receive approval from lenders with whom the shares are pledged. As part of the divestment process, the management has noted that it is yet to receive certain other significant approvals from the civil aviation ministry,” the GVK management said.
Media reports said the Hyderabad-based infrastructure conglomerate had offered to sell around 50 per cent in GVK AHL to sovereign wealth funds of Abu Dhabi Investment Authority (ADIA) and the National Investment and Infrastructure Fund (NIIF).
Earlier this year, GVK Group had invoked the right of first right to acquire stake in GVK AHL from two of its joint venture partners — Bidvest Group and ACSA. Post acquisition, GVK's share-holding in MIAL goes up to 74 per cent from the original 50.5 per cent. The company needed to find resources to fund acquisition of stake from the above partners in the first place.