GVK Power & Infrastructure Ltd has posted a loss of Rs 57.19 crore for the second quarter ended September 30 against a loss of Rs 43.66 crore for the corresponding period last year.
The Hyderabad-based diversified infrastructure company, however, posted higher net sales income of Rs 691.91 crore for the quarter against Rs 640.35 crore a year ago, aided by good performance by the airports segment.
The performance of the power segment was adversely impacted with the company logging a steep fall in revenue at Rs 96.09 crore for the quarter (Rs 265 crore).
The road division logged a higher revenue of Rs 67 crore, up from Rs 60.90 crore.
The airports segment boosted the overall revenue with Rs 528.85 crore for the quarter against Rs 314.45 crore.
Mumbai airport achieved an income of Rs 523.07 crore (Rs 314.45 crore) and Bangalore airport Rs 160.36 crore (Rs 149.45 crore).
G.V.K. Reddy, Chairman, in a statement said: “There has been uncertainty regarding supply and availability of gas to power generating plants and power projects under construction. The Group management is confident of obtaining the requisite gas allocation and recover fixed charges.”
The losses increased as the gas-based power plants could not function at full capacity due to inadequate supply. And the interest cost on the borrowings for the acquisition of stake in Mumbai and Bangalore airports affected overall profitability. The company expects to secure approvals from lenders for re-scheduling project loans aggregating to Rs 1416.47 crore.
GVK expects to recover Rs 176.43 crore it extended to GVK Oil & Gas Ltd, a fully-owned subsidiary.
The Ministry of Petroleum and Natural Gas had issued termination notice. The company expects to resolve this issue.
S. Anwar has been appointed as an additional independent director of the company.
GVK shares closed at Rs 7.71 on BSE, up 2.12 per cent.