Hyderabad-based GVK Power and Infrastructure Limited has reported a consolidated net loss of Rs 108.66 crore for the quarter ended March, 2014, a steep decline compared to a net loss of Rs 235.46 crore in the corresponding quarter last year.
Moderation in losses comes on the on the back of increased revenues and profits from airport operations apart from a dip in expenditure on other expenses front.
For the quarter under review the company’s total income grew 20.82 per cent at Rs 865.55 crore as compared with Rs 716.39 crore in the year ago period. The total expenditure has come down by 9.32 per cent to Rs 634.22 crore from Rs 699.39 crore in the corresponding previous quarter.
The GVK Power continued to face losses on account of uncertainties in power generation as a substantial portion of installed capacity of remain stranded for want of gas. However, the company was able to substantially reduce the quantum of losses from power sector operations during the quarter while revenues from the airport operations-both Bangalore and Mumbai international airports- saw a 23.62 per cent rise in revenues contributing Rs 219.36 crore to the gross profits.
For the full year ending March, 2015 the consolidated net loss stood at Rs 834.68 crore as compared to Rs 368.68 crore in the previous financial year. Total income for the year was up 6.62 per cent at Rs 3,136.30 crore as compared with Rs 2,941.59 crore in the previous year.
In its filing submitted to the stock exchanges on Saturday, the company stated that a notice of termination has been submitted to the Ministry of Petroleum and Natural Gas with respect to the exploration activity undertaken by its subsidiary, GVK Oil and Gas Limited. “Management believes that the subsidiary will be able to recover costs incurred and accordingly believes that no adjustment is required to carrying value of assets of Rs 107.25 core(net of written off Rs 75.90 crore),”it said.
The company has also not provided for in respect of the differential between the compensation of Rs 111.29 crore offered towards cancellation of coal block and the the carrying value of assets of Rs 355.75 crore in the belief that it would be appropriately reimbursed for the cancelled coal block, according to the filing.