The Bangalore-based group reported a consolidated net loss of Rs. 326 crore in the April-June quarter
GMR Infrastructure’s consolidated net loss has widened almost three and half times year-on-year basis to Rs. 326 crore in the April-June quarter due to a host of reasons, including muted revenue growth, rise in costs and higher interest outgo.
The Bangalore-based roads-to-energy-to-airports group had reported a consolidated net loss of Rs. 94.30 crore in the corresponding quarter of the previous fiscal.
“Loss after Minority is mainly on account of the recently commissioned EMCO and Kamlanga power plants, which are in stabilisation phase and yet to generate full revenue.
Financial performance is likely to improve once operations in the new units are stabilised,” the company said in a statement.
Its total income from operations was up marginally by 1.29 per cent to Rs. 2,635 crore in the quarter as 65 per cent fall in revenues from EPC division negated the growth reported by all other business segments. GMR’s total income in Q1FY13 was Rs. 2601.45 crore.
Gross revenue from the engineering, procurement and construction (EPC) division was at Rs. 171 crore, down 65 per cent. The airports division’s revenue was Rs. 1,394.58 crore, up 5.39 per cent, while the energy business reported a growth of 25 per cent at Rs. 932 crore. Revenues from roads segment was up 56.71 per cent at Rs. 164.70 crore.
“Divestment of Jadcherla Road project, non operation of Male airport and lower EPC turnover have impacted overall growth in gross revenue,” the company said.
GMR’s total expenditure also rose to Rs. 2,350.69 crore during the quarter as its fuel costs (at Rs. 568 crore) and depreciation (Rs. 311 crore) increased by 56 per cent and 23 per cent, respectively.
Besides, its finance cost was up 27 per cent to Rs. 609.75 crore.
Commenting on the results, GMR’s chairman G.M. Rao said: “While the gas-based (power) plants are still affected by lack of gas supply, the coal uncertainty has to some extent got mitigated through the CCEA directive and the coal-based plants are being stabilised.
“We have signed the fuel supply agreement for EMCO’s Warora Plant and operation with linkage coal has commenced.
The other coal-based plant at Kamalanga also got commissioned in the first quarter.”
Talking about the company’s airports business, he said the regulatory scenario at both the company airports at Delhi and Hyderabad is now stable. The company has also filed the application to review tariff for the Hyderabad airport.
He further said that the company has also got the in-principle approval for establishing an Electronic Manufacturing Cluster in Krishnagiri SEZ area.
Following the results, shares of the company were trading at Rs. 13.20 apiece, up 2.64 per cent, in the afternoon trade on the BSE.