GVK posts Rs 64-crore net loss in June quarter

HYDERABAD: Infrastructure firm GVK Power and Infrastructure suffered higher than expected consolidated net loss of 64.3 crore in the quarter ended June as against a net profit of 58.9 crore in the same quarter a year ago, largely due to a higher interest cost and tax expenses. Analysts on an average had expected an approximate loss of 3 crore.

During the quarter, the company incurred interest costs of 180.05 crore, up from 66.17 crore a year ago. Similarly, the taxes went up to 26.55 crore from 9.24 crore a year ago.

Total expenses during the quarter under review shot up to 712.62 crore.

The company's consolidated sales rose 33.7% to 818.6 crore in the first quarter of the financial year 2012-13 from 612.3 crore in the corresponding quarter of the last fiscal year. Other reasons for the poor performance were underperforming power plants due to restricted gas supply. The power plants in Andhra did not operate at full capacity. The transportation vertical of the company reported higher revenues on account of improved traffic in the Jaipur Expressway.