GVK Power

The company, for the 8 quarter in a row, without breaking tradition posted a consolidated net loss and it has only widened further. Loss came in at Rs.57 crore compared to loss of Rs.30 crore in Q1 and loss of Rs.44 crore in previous Q2.  Interest cost has burgeoned to Rs.213 crore, up 13% (QoQ). Its power sector vertical did very badly, with power segment reporting a revenue of Rs.96 crore v/s Rs.265 crore in Q2FY13. This was mainly due to non-availability of gas to its power plant. It’s airport vertical, which manages international airports of Mumbai and Bagalore, on the other hand did better, with a 68% (YoY) rise in revenue.  Thus thanks to the airports, consolidated net revenue of the company came in at Rs.691 crore, up 8%. So this quarter, it is more or an ‘airport company’ than a power company.

The non-availability of gas to its power plany has virtually ground the company to a halt. The company has stated that it is confident of obtaining the requisite gas allocation/recover fixed charges and accordingly believes that the investments in subsidiary amounting to Rs.1083 crore are recoverable in normal course of business. It has applied for re-scheduling of project loans aggregating Rs. 1416 crore. Its debt (long term borrowings + short term borrowings) rose 18% (YoY) at over Rs.20,000 crore.