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GVK Power posts Rs 44-crore loss in Q2

Posted on Nov 10, 07:58PM | IANS

GVK Power and Infrastructure Saturday announced a net loss of Rs.43.66 crore for the second quarter ended Sep 30 as against a net profit of Rs.37.92 crore for the corresponding quarter of last year.

The loss is mainly ascribed to interest paid on debt raised for buying stakes in the GVK-operated Mumbai and Bangalore airport projects.

The company said restricted supply of gas for its power projects in Andhra Pradesh, resulting in below capacity operations, was another reason for the loss.

However, sales income for the quarter rose nearly 35 percent to Rs.640.35 crore as against Rs.477.38 crore for the same period last year.

The company said it has domestic projects worth over USD 6.6 billion in the pipeline.

GVK has recently acquired Australian coal mines in Queensland's Galilee basin with 8 billion tonnes of reserves for USD 1.26 billion.

The company plans an investment of USD 10 billion for setting up mines, a 500 km rail project and a port at Abbot Point in Queensland, which will form one of the world's largest integrated "pit-to-port" operations described by Australian authorities as a project of national importance.