GVK loss widens to Rs.57.

19 cr in September quarter
Total income from operations grew 8% to Rs.691.9 crore from a year earlier
Viswanath Pilla

GVK said it has sought reschedulement of project loans aggregating to Rs1,416.47 crore from lenders.

Hyderabad: GVK Power and Infrastructure Ltd widened its consolidated loss to Rs. 57.19 crore in the quarter ended 30 September on account of fuel shortages at its power plants and high interest costs. The company had reported a loss of Rs.43.66 crore in the corresponding quarter of the previous year. Total income from operations grew 8% toRs.691.9 crore from a year earlier. The loss during the quarter was attributable mainly to the stoppage of supply of gas for two power plants and reduced supply to one plant, as a result of which the plants operated at very low capacity, GVK said in a statement on Thursday. The companys three gas-based projects469 megawatts (MW) GVK Gautami Power Ltd, and the 217MW Jegurupadu phase I and the 228MW Jegurupadu phase II projects of GVK Industries Ltd recorded a revenue ofRs.96 crore in the second quarter, down 64% from Rs.265 crore a year earlier. The company said the GVK Gautami and the Jegurupadu phase II projects were idle due to the lack of availability of gas, while the Jegurupadu phase I operated at 45% plant load factor, or capacity utilization levels.
Gas Authority of India Ltd supplied gas to the Jegurupadu phase I plant, while supplies from Reliance Industries Ltds D6 block in the Krishna-Godavari basin has been stopped since 31 March, GVK said.

There has been uncertainty regarding supplies and availability of gas to power generating plants and power projects under construction of the group, the company said, adding that the management is confident of obtaining the requisite gas allocation and recover fixed charges. GVK also said it has sought rescheduling of project loans aggregating toRs.1,416.47 crore from lenders and is confident of receiving approval of the lenders. GVK has a consolidated debt of around Rs.20,000 crore. Interest costs rose 20.6% to Rs.212.6 crore in the September quarter. The interest cost on borrowing for the acquisition of a stake in Mumbai and Bangalore airports also has an impact on the consolidated profit, the company said. Revenue from its airport business grew 68% to Rs.528.9 crore. GVK owns and operates Mumbai International Airport Pvt. Ltd and Bengaluru International Airport Ltd. Mumbai International Airports revenue climbed 66% to Rs.523.07crore in the September quarter, and net profit doubled to Rs.84.77 crore. Bengaluru International Airports revenue rose a more modest 7% toRs.160.36 crore but net profit surged to Rs.38.62 crore from Rs.16.74 crore a year earlier. GVK, through its wholly owned unit GVK Airport Developers Pvt. Ltd, holds 50.5% of a consortium that operates the Mumbai airport. It has a 43% stake in a separate consortium that runs the airport in Bangalore. The revival of infrastructure companies like GVK will depend on their ability to quickly monetize assets and reduce debt, said Satish Kantheti, head of research at Hyderabad-based brokerage house Zen Securities Ltd. Organic turnaround at this juncture will be tough with a slowing economy, Kantheti said. GVK has been in talks with investors to sell stakes in its airport business to retire a portion of its debt. The process of due diligence is on, said Isaac George, director at GVK. Another group company GVK Jaipur Expressway Pvt. Ltd recorded an 11% increase in revenue to Rs.67.8 crore for the September quarter. Shares of GVK rose 2% to close at Rs.7.70 on BSE on Thursday, while the benchmark index Sensex rose 1.02% to 20,399.42 points.

GVK loss widens to Rs.57.19 cr in September quarter

Total income from operations grew 8% to Rs.691.9 crore from a year earlier
Viswanath Pilla

GVK said it has sought reschedulement of project loans aggregating to Rs1,416.47 crore from lenders.

Hyderabad: GVK Power and Infrastructure Ltd widened its consolidated loss to Rs. 57.19 crore in the quarter ended 30 September on account of fuel shortages at its power plants and high interest costs. The company had reported a loss of Rs.43.66 crore in the corresponding quarter of the previous year. Total income from operations grew 8% toRs.691.9 crore from a year earlier. The loss during the quarter was attributable mainly to the stoppage of supply of gas for two power plants and reduced supply to one plant, as a result of which the plants operated at very low capacity, GVK said in a statement on Thursday. The companys three gas-based projects469 megawatts (MW) GVK Gautami Power Ltd, and the 217MW Jegurupadu phase I and the 228MW Jegurupadu phase II projects of GVK Industries Ltd recorded a revenue ofRs.96 crore in the second quarter, down 64% from Rs.265 crore a year earlier. The company said the GVK Gautami and the Jegurupadu phase II projects were idle due to the lack of availability of gas, while the Jegurupadu phase I operated at 45% plant load factor, or capacity utilization levels.
Gas Authority of India Ltd supplied gas to the Jegurupadu phase I plant, while supplies from Reliance Industries Ltds D6 block in the Krishna-Godavari basin has been stopped since 31 March, GVK said.

There has been uncertainty regarding supplies and availability of gas to power generating plants and power projects under construction of the group, the company said, adding that the management is confident of obtaining the requisite gas allocation and recover fixed charges. GVK also said it has sought rescheduling of project loans aggregating toRs.1,416.47 crore from lenders and is confident of receiving approval of the lenders. GVK has a consolidated debt of around Rs.20,000 crore. Interest costs rose 20.6% to Rs.212.6 crore in the September quarter. The interest cost on borrowing for the acquisition of a stake in Mumbai and Bangalore airports also has an impact on the consolidated profit, the company said. Revenue from its airport business grew 68% to Rs.528.9 crore. GVK owns and operates Mumbai International Airport Pvt. Ltd and Bengaluru International Airport Ltd. Mumbai International Airports revenue climbed 66% to Rs.523.07crore in the September quarter, and net profit doubled to Rs.84.77 crore. Bengaluru International Airports revenue rose a more modest 7% toRs.160.36 crore but net profit surged to Rs.38.62 crore from Rs.16.74 crore a year earlier. GVK, through its wholly owned unit GVK Airport Developers Pvt. Ltd, holds 50.5% of a consortium that operates the Mumbai airport. It has a 43% stake in a separate consortium that runs the airport in Bangalore. The revival of infrastructure companies like GVK will depend on their ability to quickly monetize assets and reduce debt, said Satish Kantheti, head of research at Hyderabad-based brokerage house Zen Securities Ltd. Organic turnaround at this juncture will be tough with a slowing economy, Kantheti said. GVK has been in talks with investors to sell stakes in its airport business to retire a portion of its debt. The process of due diligence is on, said Isaac George, director at GVK. Another group company GVK Jaipur Expressway Pvt. Ltd recorded an 11% increase in revenue to Rs.67.8 crore for the September quarter. Shares of GVK rose 2% to close at Rs.7.70 on BSE on Thursday, while the benchmark index Sensex rose 1.02% to 20,399.42 points.

'Maharashtra to reassess hike in power tariff'

Samrat Phadnis | Nov 15, 2013, 02.42 AM IST

KOLHAPUR: The state government is considering reassessment of the recent power tariff hike, which has adversely affected the industry, indicated cabinet ministers in the city on Thursday. Foundrymen had warned the leaders that industrialists would prefer to shift base to Karnataka, where the power tariff is lower than that in Maharashtra. Ministers Rajesh Tope,Hasan Mushrif and Satej Patil assured industrialists that the state is working to reach a consensus on the issue. "Chief minister Prithviraj Chavan and deputy chief minister Ajit Pawar, who is also the state energy minister, have formed a committee to reassess the power tariff and the government will provide some relief to the industrial sector," said minister of state for higher and technical education Rajesh Tope, who was in the city to inaugurate the metallurgy institute, Dhatu Tantra Prabodhini. "I have handled the energy portfolio and understand the situation the power generation and distribution companies face at present. We also know that the cost of production has increased due to the power tariff hike and this has made industrial production weak. I assure you that the government is working on finding a solution. The power tariff hike has received a negative response in every district of the state," Tope said. However, the minister refused to give a deadline and said a decision on the issue would be taken soon. Echoing similar sentiments, state labour minister Hasan Mushrif said a decision on the issue would be taken at the earliest. State rural development minister Satej Patil said, "We expect the committee, which has been set up under the chairmanship of senior minister Narayan Rane, to provide recommendations." Industrialists from Kolhapur along with other foundrymen raised the issue of expensive power in Maharashtra have been pursuing the government to rollback the power tariff hike. The state government has responded positively for the first time. "Kolhapur is located near the Maharashtra-Karanataka border. Thee industrial sector from Hubli to Belgaum is rapidly developing. If the government fails to restructure the power tariff, the industrialists might shift base to Karnataka," said chairman of the Gokul-Shirgaon Manufacturers' Association, one of the largest industrial sectors in Kolhapur, Chandrakant Jadhav. The Indian foundry industry is a leading engineering sector with an annual production of over 7.4 million tonnes of castings, accounting for about 8% to 9% of the total production in the world. The country has approximately 4,500 foundry units, of which 90% can be classified as small-scale units, 8% as medium-scale units, and 2% as large-scale units. Kolhapur has over 350 foundries. The powerloom industry, that had stalled work for five days last week, has also been hit by the power tariff hike. Maharashtra Electricity Regulatory Commission's ( MERC) order in early September to recover Rs 3,685.51 crore from power consumers has upset industrialists as they are forced to pay an average of Rs 1.25 for every unit of extra consumption.

'Maharashtra to reassess hike in power tariff'

Samrat Phadnis | Nov 15, 2013, 02.42 AM IST

KOLHAPUR: The state government is considering reassessment of the recent power tariff hike, which has adversely affected the industry, indicated cabinet ministers in the city on Thursday. Foundrymen had warned the leaders that industrialists would prefer to shift base to Karnataka, where the power tariff is lower than that in Maharashtra. Ministers Rajesh Tope,Hasan Mushrif and Satej Patil assured industrialists that the state is working to reach a consensus on the issue. "Chief minister Prithviraj Chavan and deputy chief minister Ajit Pawar, who is also the state energy minister, have formed a committee to reassess the power tariff and the government will provide some relief to the industrial sector," said minister of state for higher and technical education Rajesh Tope, who was in the city to inaugurate the metallurgy institute, Dhatu Tantra Prabodhini. "I have handled the energy portfolio and understand the situation the power generation and distribution companies face at present. We also know that the cost of production has increased due to the power tariff hike and this has made industrial production weak. I assure you that the government is working on finding a solution. The power tariff hike has received a negative response in every district of the state," Tope said. However, the minister refused to give a deadline and said a decision on the issue would be taken soon. Echoing similar sentiments, state labour minister Hasan Mushrif said a decision on the issue would be taken at the earliest. State rural development minister Satej Patil said, "We expect the committee, which has been set up under the chairmanship of senior minister Narayan Rane, to provide recommendations." Industrialists from Kolhapur along with other foundrymen raised the issue of expensive power in Maharashtra have been pursuing the government to rollback the power tariff hike. The state government has responded positively for the first time. "Kolhapur is located near the Maharashtra-Karanataka border. Thee industrial sector from Hubli to Belgaum is rapidly developing. If the government fails to restructure the power tariff, the industrialists might shift base to Karnataka," said chairman of the Gokul-Shirgaon Manufacturers' Association, one of the largest industrial sectors in Kolhapur, Chandrakant Jadhav. The Indian foundry industry is a leading engineering sector with an annual production of over 7.4 million tonnes of castings, accounting for about 8% to 9% of the total production in the world. The country has approximately 4,500 foundry units, of which 90% can be classified as small-scale units, 8% as medium-scale units, and 2% as large-scale units. Kolhapur has over 350 foundries. The powerloom industry, that had stalled work for five days last week, has also been hit by the power tariff hike. Maharashtra Electricity Regulatory Commission's ( MERC) order in early September to recover Rs 3,685.51 crore from power consumers has upset industrialists as they are forced to pay an average of Rs 1.25 for every unit of extra consumption.

Tata Power swings to profit despite forex loss

Gross revenue for the fiscal second quarter stood at Rs8,764.69 crore, an increase of 14% from a year ago
Makarand Gadgil

Tata Power had incurred losses in second quarter of the last fiscal year, mainly because of impairment charges of Rs250 crore it had booked due to losses at its 4,000 MW power project at Mundra in Gujarat. Photo: Priyanka Parashar/Mint

Mumbai: Tata Power Co. Ltd on Thursday announced a Rs74.97 crore profit for the quarter ended 30 September. It had reported a loss of Rs83.80 crore in the year-ago quarter. A Bloomberg poll of 22 analysts had estimated Tata Powers net profit at Rs128.2 crore. Indias largest private power generation company said gross revenue for the fiscal second quarter stood at Rs8,764.69 crore, an increase of 14% from a year ago. The drop in coal prices has helped the company to record a net profit. The cost of fuel came down from Rs1,492.01 crore in September quarter of fiscal year 2013 to Rs958.71 crorea drop of nearly 36%. Tata Power had incurred losses in second quarter of the last fiscal year, mainly because of impairment charges of Rs250 crore it had booked due to losses at its 4,000 MW power project at Mundra in Gujarat.

The companys performance in power business, both generation and distribution segments, is strong, said Harshvardhan Dole, an analyst with domestic brokerage India Infoline Finance Ltd. However, it has incurred foreign exchange loss of Rs250 crore in the coal business and it seems to be a recurring issue for Tata Power. A drop in prices of coal in international market has helped the company to keep losses from Mundra at minmum level and that has helped company to return to profits, said Rupesh Sankhe, an analyst with Karvy Stock Broking Ltd. Tata Power is incurring a loss of around 60 paisa per unit generated at the Mundra plant, where it is expected to generate 27,000 million units in the year to March. It is hoping that the Central Electricity Regulatory Commission (CERC) will announce compensatory tariff sooner than later. The commission is currently hearing Tata Powers petition. In the second quarter of fiscal 2014, the company reported revenue growth of 14% driven by operations of all the units of Mundra and Maithon projects, managing director Anil Sardana said in a statement. All our projects and subsidiaries have performed well. However, we continue to be pressurised by higher forex losses. Indonesia changed rules for export of coal from that country in September 2011 and linked the prices of coal to international indices for the spot market, making long-term coal purchase agreement made by Indian companies, including Tata Power, Reliance Power Ltd and Adani Power Ltd, null and void. Subsequently, Tata Power moved CERC in July 2012. In April, while accepting Tata Powers demand for compensatory tariff, CERC appointed a committee headed by mortgage lender Housing Development Finance Corp Ltd. chairman Deepak Parekh to suggest a formula Tata Power to charge higher tariffs. The power sector regulator is currently holding hearings on the formula suggested by the committee

Sachin arrival in 1989 lightened the atmosphere in Pakistan: More

One of Sachin Tendulkar's most endearing qualities is his zestful competitiveness. It was due to this aspect of his nature that he stood out during the tour of Pakistan in 1989 which was his first international tour. There was a competition between Kapil Dev and him to determine who was the stronger of the two. The target was to hit the ball out of the National Stadium at Karachi and on most occasions Sachin, even though he was just 16, cleared the stands. He was also a more than handy tennis player. Now, those were the days when the players had a running tiff with theBCCI over a host of issues. The Pakistan tour too was a controversial one in that respect. But when Sachin came in everything changed. His entry into the team laid the foundation of a lighter, healthier atmosphere. We had a Sunday Club where everybody would come in a fancy dress. The tour really went off well. No wonder the Master went on to become an integral part of the team as well as cricket in India. One couldn't think about cricket without Sachin being at the very core of it. I also remember the time when he suffered the tennis elbow. It was a big concern for us (More was the chief selector) as he had missed many matches. There was constant pressure on us and the backroom staff over when we should play him. We didn't prefer to rush him because he was the mainstay of our batting. Looking back, I think we really handled the situation well. We were lucky to have a good team to take care of him and that included his brother Ajit and wife Anjali. He always came back stronger after an injury and it only showed his mental strength. (Kiran More played 25 Tests and 43 ODIs with Sachin. He spoke to Ehtesham Hasan)

Sachin's arrival in 1989 lightened the atmosphere in Pakistan: More

One of Sachin Tendulkar's most endearing qualities is his zestful competitiveness. It was due to this aspect of his nature that he stood out during the tour of Pakistan in 1989 which was his first international tour. There was a competition between Kapil Dev and him to determine who was the stronger of the two. The target was to hit the ball out of the National Stadium at Karachi and on most occasions Sachin, even though he was just 16, cleared the stands. He was also a more than handy tennis player. Now, those were the days when the players had a running tiff with theBCCI over a host of issues. The Pakistan tour too was a controversial one in that respect. But when Sachin came in everything changed. His entry into the team laid the foundation of a lighter, healthier atmosphere. We had a Sunday Club where everybody would come in a fancy dress. The tour really went off well. No wonder the Master went on to become an integral part of the team as well as cricket in India. One couldn't think about cricket without Sachin being at the very core of it. I also remember the time when he suffered the tennis elbow. It was a big concern for us (More was the chief selector) as he had missed many matches. There was constant pressure on us and the backroom staff over when we should play him. We didn't prefer to rush him because he was the mainstay of our batting. Looking back, I think we really handled the situation well. We were lucky to have a good team to take care of him and that included his brother Ajit and wife Anjali. He always came back stronger after an injury and it only showed his mental strength. (Kiran More played 25 Tests and 43 ODIs with Sachin. He spoke to Ehtesham Hasan)

Tata Power swings to profit despite forex loss

Gross revenue for the fiscal second quarter stood at Rs8,764.69 crore, an increase of 14% from a year ago
Makarand Gadgil 1
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Tata Power had incurred losses in second quarter of the last fiscal year, mainly because of impairment charges of Rs250 crore it had booked due to losses at its 4,000 MW power project at Mundra in Gujarat. Photo: Priyanka Parashar/Mint

Mumbai: Tata Power Co. Ltd on Thursday announced a Rs74.97 crore profit for the quarter ended 30 September. It had reported a loss of Rs83.80 crore in the year-ago quarter. A Bloomberg poll of 22 analysts had estimated Tata Powers net profit at Rs128.2 crore. Indias largest private power generation company said gross revenue for the fiscal second quarter stood at Rs8,764.69 crore, an increase of 14% from a year ago. The drop in coal prices has helped the company to record a net profit. The cost of fuel came down from Rs1,492.01 crore in September quarter of fiscal year 2013 to Rs958.71 crorea drop of nearly 36%. Tata Power had incurred losses in second quarter of the last fiscal year, mainly because of impairment charges of Rs250 crore it had booked due to losses at its 4,000 MW power project at Mundra in Gujarat. The companys performance in power business, both generation and distribution segments, is strong, said Harshvardhan Dole, an analyst with domestic brokerage India Infoline Finance Ltd. However, it has incurred foreign exchange loss of Rs250 crore in the coal business and it seems to be a recurring issue for Tata Power. A drop in prices of coal in international market has helped the company to keep losses from Mundra at minmum level and that has helped company to return to profits, said Rupesh Sankhe, an analyst with Karvy Stock Broking Ltd. Tata Power is incurring a loss of around 60 paisa per unit generated at the Mundra plant, where it is expected to generate 27,000 million units in the year to March. It is hoping that the Central Electricity Regulatory Commission (CERC) will announce compensatory tariff sooner than later. The commission is currently hearing Tata Powers petition. In the second quarter of fiscal 2014, the company reported revenue growth of 14% driven by operations of all the units of Mundra and Maithon projects, managing director Anil Sardana said in a statement. All our projects and subsidiaries have performed well. However, we continue to be pressurised by higher forex losses.

Indonesia changed rules for export of coal from that country in September 2011 and linked the prices of coal to international indices for the spot market, making long-term coal purchase agreement made by Indian companies, including Tata Power, Reliance Power
Ltd and Adani Power Ltd, null and void. Subsequently, Tata Power moved CERC in July 2012.

In April, while accepting Tata Powers demand for compensatory tariff, CERC

appointed a committee headed by mortgage

lender Housing Development Finance Corp Ltd. chairman Deepak Parekh to suggest a formula Tata Power to charge higher tariffs. The power sector regulator is currently holding hearings on the formula suggested by the committee.