GVK Power loss narrows to Rs 30.59 cr, seeks loan rescheduling

Written by Press Trust of India | New Delhi | Updated: Aug 13 2013, 00:03am hrs
GVK Power
GVK Power and Infrastructure said today its consolidated net loss narrowed to Rs 30.59 crore in the April-June quarter as revenue growth in its airports division countered a decline in the electricity business.

The Hyderabad-based flagship firm of the GVK group has sought to reschedule Rs 1,298.76 crore of project loans, it said in a filing to the BSE.

The company had posted a consolidated net loss of Rs 64.30 crore a year earlier.

Gross revenue from the power business declined by over 80 per cent to Rs 86.62 crore amid a shortage of natural gas, pulling down GVK Power's total income from operations to Rs 699.52 crore, a fall of 14.55 per cent.

Total income from operations in the corresponding quarter of the previous fiscal was Rs 818.55 crore, while gross revenue from the power business was Rs 433.21 crore.

"There has been uncertainty regarding supplies/ availability of gas to power generating plants and power projects under construction of the group.

"Management is confident of obtaining the requisite gas allocation/recover fixed charges and accordingly believes that investments in subsidiary companies amounting to Rs 1,083.23 crore/fixed assets with carrying value of Rs 2,339.90 crore are recoverable in the normal course of business," the company said.

It added that the "management is also confident of receiving approval of the lenders for reschedulement of project loans aggregating to Rs 1,298.76 crore."

While revenue from the airports unit surged 67.76 per cent to Rs 548.29 crore, payments to the Airport Authority of India for operating the Mumbai and Bengaluru airports increased 63.77 per cent to Rs 208 crore during the quarter.

Gross revenue from the company's roads and highways segment increased 9 per cent to Rs 63.78 crore.

GVK Power's total expenditure in the quarter fell to Rs 519.98 crore from Rs 712.62 crore as fuel costs declined 79 per cent to Rs 65 crore. Finance costs during the quarter were Rs 188.43 crore, while its tax outgo was Rs 59.72 crore.

The company's shares climbed 11.8 per cent to Rs 7.20 on the BSE at 1500 hours.