GVK Power & Infrastructure reports Rs. 712.67 Cr total income in Q1

GVKPIL registered a consolidated total income from operations of Rs. 712.67 Crore for the quarter ended June 30, 2014, as against Rs. 699.52 Crore during the corresponding quarter of the previous year.

GVKPIL’s consolidated net loss for the quarter ended June 30, 2014 is Rs. 281.34 Crore as against a net loss of Rs. 30.59 Crore in the corresponding quarter of the previous year.

The company said in a statement: "The loss in MIAL is attributable to the one-time charge of Rs. 286.78 Crore which is the written down value of the old terminal T2 that has been demolished. The higher financial expenses (Rs. 130.30 Crore) and higher depreciation (Rs. 137.17 Crore, which includes Rs. 29.21 Crore due to changed useful life of assets as per the new company’s Act effective April 1, 2014) are on account of the capitalisation of the new terminal T2.  In addition, tariff through which we can recover these costs for the control period beginning April 1, 2014 has not been issued yet, as such, aero revenues have been accounted based on the tariff order issued for the earlier control period."

"The loss in BIAL is attributable higher financial expenses (Rs. 53.35 Crore) and higher depreciation (Rs. 55.62 Crore) on account of the capitalisation of the expansion project (upgradation of the Terminal and facilities). Though the new tariff through which we can recover costs, has been approved, but its effective July 1, 2014. In addition to the above, there is a higher depreciation charge of Rs. 31.37 Crore due to changed useful life of assets as per the new company’s Act effective April1, 2014," the statement said.

"Stoppage of supply of gas for two power plants and reduced supply to one plant as a result of which the plants operated at very low capacity," it said.