|
GVK Power & Infrastructure held a conference call on May 29, 2014 to discuss the performance of the company for the quarter/fiscal ended March 2014.
Key takeaways of conference call
Of the six ongoing development projects 4 will turn revenue operational during current fiscal.
Alaknanda, which was affected by Jun 2013 calamity has seen restoration completed and the Unit 1 will commence generation by June 2014, unit 2 by July 2014, unit 3 by Aug 2014 and unit 4 by Oct 2014.
Tokisud (in Jharkhand) Coal Mines – The over burden removal will be completed by Oct 2014 and coal production will commence subsequent to that by Nov 2014.
The Govindwal Sahib (2X270 MW) project will turn revenue operational by Jan 2015. The oil firing of boiler for unit 1 is already over and that for unit 2 is going one. But the Tokisud coal will be available only from Nov 2014. So the unit will complete coal firing test and commence operation by Jan 2014. To run one unit @ 82% PLF the company requires 1 lakh Metric tones a month. By Oct end the Tokisud will supply 1 lakh tone coal and the company hope to fire both units by Jan 2014.
As far as Deoli - Kota Expressway road project is concerned the partial tolling will commence by 1st week of July 2014 and full tolling by Aug 2014. Expect Rs 100 crore of revenue in first year.
Gujarat road project is expected to get completed and CoD is expected by May 2015
J&K Hydro project (815 mw) - Just started construction so it will take 3.5 year to complete
The company is making efforts to dilute equity stake in its development projects as well as land bank so as to reduce debt. The company is working on couple of options and has got term sheet for stake sale.
MIAL capitalized amount as end of Jan 2014 is Rs 10600 crore. Capital cost envisage at the end of completion of project is RS 12390 crore of which so far capitalized is Rs 10600 crore.
MIAL - The company claimed tariff on capitalization of Rs 9800 crore. So with additional capitalization there is room for tariff increase the company will get.
Total equity infusion requirement is Rs 490 crore in case of Alaknanda, Deoli Kota, Govindwal Sahib and tokisud. Gujarat Road project- Require further Rs 198 crore for completion for 14-15 and part of 15-16
Total debt of the company is Rs 22400 crore. MIAL debt is Rs 8000 crore.
The company has capitalized CWIP at both BIAL and MIAL on Feb 14, 2014 and Jan 2014 respectively. Consequently the interest and depreciation cost has increased hurting profits of the company. Moreover the company has also accounted MAT credit reversal amounting Rs 92 crore in BIAL and this all have resulted in loss for the quarter.
The company for acquisition of additional stake in both BIAL and MIAL has borrowed Rs 2500 crore and the interest on that has also affected the profits.
The energy business turned in a loss of Rs 56 crore for Q4FY14 and Rs 205 crore for FY14. While the Jagurupaddu Phase I clocked a profit of Rs 19.82 crore for Q4FY14 and Rs 45.81 crore for FY14 the Jagurupadu II and Gautami has registered a loss of Rs 34 crore and Rs 64 crore for Q4FY14 respectively and Rs 122 crore and Rs 207 crore loss for FY14.
The Jaipur expressway has registered a net profit of Rs 13.08 crore for Q4FY14 and Rs 54.63 crore for FY14.
MIAL registered a sales of Rs 544 crore for Q4FY14 and a loss of Rs 58 crore at PAT level. For FY14 it registered a sales of Rs 2150 crore and a PAT of Rs 210 crore. BIAL registered a loss of RS 86 crore at PAT for Q4FY14 on a sales of Rs 163 crore. For FY14 BIAL registered a profit of Rs 64 crore on a sales of Rs 646 crore.
|