GVK Power: Short-Circuit!
Shares of GVK Power are down 4.94%, locked in lower circuit at Rs. 13.08 after company posted dismal June quarter earnings. Consolidated revenue for quarter ended 30th June 2014 stood at Rs. 713 crore, marginally higher QoQ (3%) and YoY (2%), but loss of Rs. 287 crore on account of demolition of old Mumbai Airport terminal widened consolidated net loss to Rs. 281 crore, from Rs. 31 crore in the year ago period. Thus, net loss per share stood at Rs. 1.78 for Q1FY15, as against net loss per share of Rs. 2.33 for FY14.
Soaring interest costs of Rs. 321 crore (Rs. 905 crore in FY14) also dented bottomline. Besides poor show in the airports segment, power segment also continued to post losses of Rs. 24 crore, with only the roads segment reporting operational profits of Rs. 47 crore.
Company’s current market capitalization stands at Rs. 2,066 crore and promoter holding is 54.25%, with institutions holding 17.28%.