Consolidated quarterly Results:

For the quarter ended June 10, consolidated total income from Operations jumped by 47% to Rs 489.86 crore owing to 53% rise in the revenues from Power segment at Rs 443 crore which constituted 90% of the total revenues. The revenues from road segment inched up by 10% to Rs 43.69 crore and constituted 9% of the total revenues. Although margins of power segment inched up by 130 bps to 13.9%, the margins in road segment fell sharply by 1170 bps to 35.6% and pressurized overall OPM. As a result, OPM has slipped by 260 bps to 25.8%. The expenditure heads cumulatively grew by 53% to Rs 363.31 crore in the quarter under review. As a result, Operating Profit has increased by 34% to Rs 126.25 crore.

Although other income has doubled to Rs 7.59 crore, Interest expenses swung up by 122% to Rs 68.24 crore and depreciation inched up by 29% to Rs 46.18 crore; and pulled down PBT by 39% to Rs 19.42 crore. At segment level, segment profit of Power has jumped up by 69% to Rs 61.75 crore and constituted 77% of the total segment profit. However, profit at roads segment has declined by 17% to Rs 15.55 crore and constituted 19% of the total segment profit.

Further, dip in effective tax rate by 710 bps to 18.36% has curtailed further dampening of PAT to 33% at Rs 15.87 crore. Finally, 102% jump in the share of Profits from associates to Rs 22.85 crore and 140% increase in the Minority interest at Rs 5.33 crore has pulled up Net Profit to report 2% rise at Rs 33.39 crore.

Yearly Performance:

The net sales / Income from operations stood at Rs 1786.64 crore indicating an increase of 248%. The OPM decreased by 820 basis points to 25.7%. The ensuing Operating Profit increased by 164% to Rs 459.67 crore. The Other income increased by 36% to Rs 29.18 crore. The subsequent PBIDT increased by 150% to Rs 488.85 crore. The Interest expense increased sharply to Rs 208.47 crore, while the depreciation (net of withdrawals from grant) expense stood at Rs 137.12 crore, an increase of 76%.

The PBT increases by 66% to Rs 143.26 crore. The tax expense stood at Rs 20.01 crore resulting in a PAT of Rs 123.25 crore which was 61% higher on a Y-o-Y basis comparison. The share of profit from associates (gross) stood at Rs 51.68 crore, while the Minority Interest stood at Rs 19.06 crore. The Net profit after minority interest stood at Rs 155.87 crore, higher by 45% on y-o-y basis.

Other Information:

• During the quarter, the company has transferred its Investments in GVK Coal (Tokisud) Company Private Limited and Coriganga Hydro Power Private Limited to its wholly owned subsidiary GVK Energy Limited. The company has also received approval from the shareholders for transfer of its investment in GVK Industries Limited, GVK Gautami Power Limited, GVK Power (Goindwal Sahib) Limited and Alaknanda Hydro Power Company Limited to its wholly owned subsidiary GVK Energy Limited as a part of its exercise to create a Power sub holding.
• During the current quarter ended GVK Jaipur Expressway Private Limited, a wholly owned subsidiary of the company has amortized Toll rights based on the actual traffic for the period. Had it continued to use the Straight Line method as followed earlier the charge to the Profit and loss account, net of tax would have been higher by Rs. 1.75 crore
• During the quarter, the company has acquired entire stake of GVK Transportation Private Limited. As a result it has become a wholly owned subsidiary of the company.
• The Promoters stake has reduced from 60.94% in June 09 to 54.25% in June 10. The Promoters have pledged 7.18% of the shares as % of total share holding of promoter and promoter group.
• The Scrip is hovering at Rs 44.15 on BSE.