GVK Power & Infra net loss Rs.281 crore

Diversified infrastructure projects company GVK Power & Infrastructure Ltd. closed the first quarter of 2014-15 with a net loss of about Rs.281 crore, up by around Rs.250 crore over corresponding period last year.

In a filing with the Bombay Stock Exchange (BSE), the company said it had posted a net loss of Rs.281.33 crore on a consolidated basis for the first quarter of the current fiscal up from Rs.30.59 crore posted during the quarter ending June 30, 2013.

For the period under review, the company had earned a consolidated revenue of Rs.712.67 crore up from Rs.699.52 crore posted for the quarter ended June 30, 2013.

The company’s total expenses went up to Rs.958.07 crore last quarter, up from Rs.519.98 crore incurred during corresponding quarter of the previous fiscal.

The company has written off Rs.286.78 crore as loss on disposal of assets – loss due to the demolition of old terminal at Mumbai Airport.

During the period under review, the company also wrote back tax expense of around Rs.119 crore.

GVK Power’s interest cost for the first quarter went up to Rs.320.97 crore up from Rs.188.43 crore incurred for the period ended June 30, 2013.

The company said its wholly owned subsidiary GVK Oil & Gas Ltd. has submitted termination notice with the Ministry of Petroleum and Natural Gas under the production sharing agreement.

GVK Power said the company is confident of recovering cost incurred by its subsidiary GVK Oil and no adjustment in the accounts is necessary to carrying value of assets of Rs.183.52 crore.

Similarly, GVK Power said its subsidiaries in the power sector have received approval from the bank for rescheduling of its loan and is confident of getting gas allocation or recover the costs incurred.