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Bangalore-based infrastructure major GMR Infrastructure continued its dismal performance as its net loss widened by more than three times to Rs 326 crore for the first quarter of current fiscal as against the corresponding period last year.
The company, which builds and manages airports, power plants and highways has said that its revenues grew by hardly more than a per cent to Rs 2,635 crore.
GMR saddled with a debt of close to Rs 39,000 crore under a leverage of almost of four times saw its interest outflow spike by a sharp 27% to Rs 610 crore.
The company said the loss is mainly on account of the recently commissioned EMCO and Kamlanga power plants, which are in stabilization phase and yet to generate full revenue and due to non-recurring forex loss in project imports.
"Financial performance is likely to improve once operations in the new units are stabilized," the company added once again.
With couple of its power plants not working on optimum levels, operating profit also dropped by close to 18% to Rs 284 crore.
G M Rao, Group Chairman, said: “The Regulatory scenario at both our Airports at Delhi and Hyderabad is now stable and both are contributing positively to the cash flows, with international traffic picking up both at DIAL and GHIAL. We have already filed the tariff application for Hyderabad airport.
"While the Gas based 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 stabilized. We have signed the FSA for EMCO’s Warora Plant, and operation with linkage coal has commenced. The other coal based plant at Kamalanga also got commissioned in Quarter 1.
"The Highways sector revenue is growing reasonably at over 10% with seven operating assets. We have been awarded in principle approval for the establishment of EMC - Electronic Manufacturing Cluster in Krishnagiri SEZ area.
"The focus of the company is enhancing liquidity through cash generation. Our thrust on getting back the receivables has yielded results and we have received substantial portions of receivable cleared by TNEB and NACIL.”
