GVK Power & Infra posts 19% decline in net profit

GVK Power & Infra posts 19% decline in net profit GVK Power & Infrastructure Ltd has reported a 19 per cent decline, to 327.3 million rupees, in its net consolidated profit for the first quarter ended June 30, due to higher interest costs during the period.

However, its net sales doubled to 3.3 billion rupees, as compared to 1.3 billion rupees in the corresponding period last year, primarily due to handsome revenue from its newly built two power plants with 684 mega watts capacity.

The company that operates the Mumbai airport, suffered significant loss on accounts of increased financial costs and rise in interest rates.

The company's financial expenditures increased to 306.7 million rupees, from 79.4 million rupees a year before, which adversely hit its margin. Its net profit, at stand alone basis, fell 79.44 per cent to Rs 1.85 crore during the period.

However, its power business performed well, growing more than three times to 2.9 billion rupees, as per GVK's filing before the Bombay Stock Exchange.

Stocks of the company closed almost flat at 44.50 rupees at the BSE, down by just 0.3 per cent.