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GVK power & infrastructure has reported faded results in the quarter ended September 11 with 11% dip in the Net Profit at Rs 37.92 crore over 5% dip in the total income from operations at Rs 477.38 crore. Higher interest cost and spike in taxation has dented the profitability of the company. While the revenues from its major contributor Power business declined 8%, segment profits improved 10% in quarter under review.
Quarterly performance:
For the quarter ended September 11, the company has reported marginal 5% decline in the total income from operations at Rs 477.38 crore mainly on the back of 8% dip in the revenues from its major power business at Rs 416.85 crore. Power business revenues constituted 87% of the total revenues in the quarter under review. On the other hand revenues from roads segment grew 22% and constituted 12% of the total revenues.
The company has witnessed sharp 480 bps dip in the fuel cost to 55.4% of the total sales in quarter under review. However, the other expenditure jumped 320 bps to 12.7% while the staff cost remained flat at 1.7%. At the segment front, margins from the power business improved 280 bps to 16.8% while that of roads eroded from 66.5% in the corresponding previous quarter to 50% in the quarter under review. With 10% increase in the segment profits of Power division at Rs 69.89 crore and constituting major 72% of the total segment profit; OPM expanded 150 bps to 30.1%. Resultantly Operating Profit was flat at Rs 143.77 crore in the quarter under review.
The other income rose to nearly four folds at Rs 13.88 crore against Rs 3.05 crore in the corresponding previous year and led EBIDTA up 7% to Rs 157.65 crore. However, Interest cost jumped up 23% to Rs 78.89 crore and depreciation marginally inched up 1% to Rs 46.55 crore, thereby resulting PBT down by 12% to Rs 32.21 crore. After accounting 98% jump in the taxation at Rs 16.30 crore, PAT was down 44% to Rs 15.91 crore. Finally 39% jump in the profit from associates at Rs 30.65 crore and 11% increase in the Minority interest has curtailed de growth in led Net Profit by 11% to Rs 37.92 crore.
Half yearly Performance:
For the half year ended September 11, the company has reported 27% increase in the Net Profit at Rs 96.84 crore over 9% increase in the total income from operations at Rs 1089.69 crore. OPM slipped 120 bps to 26% as the segment margins on roads slipped marginally while that of power segment remained flat.
Other Information:
During the quarter, the company has acquired 10% stake in GVK Coal Developers (Singapore) Pte Limited an entity created for purposes of acquiring Hancock coal.
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