GVK Power
The company had a flat Q4, with net sales coming in at Rs.65 crore v/s Rs.65 crore in Q3 and Rs.64 crore in Q4FY13. Yet, it ended Q4FY14, with a net profit at Rs.5 crore , 67% sequentially and up almost 9 times YoY. And this startling jump in net profit, despite the flat sales was on account of the Rs.4.11 crore Exceptional Item, which is remuneration refunded by Executive Chairman for the FY09, FY11, FY12 and FY13. MAT credit entitlement of Rs.2 crore also helped. The company has stated that the slowdown in the economy and political uncertainty in the region caused a fall in demand.
The company ended the fiscal with a net profit at Rs.5 crore compared to Rs.9 crore in FY13. The company’s interest burden is pretty high vis-à-vis the bottomline at Rs.23 crore for FY14, up 4.5%. The numbers are really no great shakes; but for the various ‘adjustments’ made in Q4, the net profit would have slid sharply. Promoters stake as at 31st March 2014 stood at 74.99% of which 25.52% stake is held by Indian Hotels, which is the reason for whatever little fancy the stock holds.