Bangalore: The Bangalore International Airport Limited (BIAL) which runs the Kempegowda International Airport, in which Hyderabad-based GVK Group is the single largest shareholder, has reported a net loss of Rs 30 crore for the first quarter of FY15 compared to a net profit of Rs 65.97 crore in the corresponding previous quarter.
The GVK Group has said that the loss in BIAL is attributable to the higher financial expenses (Rs 53.35 crore) and a higher depreciation (Rs 55.62 crore) on account of the capitalisation of the expansion project (upgrading of the terminal and facilities). BIAL recorded a 14 per cent increase in revenue of Rs 182.80 crore for the quarter-ended June 30, 2014 as against Rs 160.72 crore for the corresponding quarter of the previous year.
“Though the new tariff through which we can recover costs has been approved, it’s effective July 1, 2014. In addition to the above, there is a higher depreciation charge of Rs 31.37 crore due to the changed useful life of assets as per the new company’s Act effective April 1, 2014,” GVK said in a statement.
13/08/14 Business Standard
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The GVK Group has said that the loss in BIAL is attributable to the higher financial expenses (Rs 53.35 crore) and a higher depreciation (Rs 55.62 crore) on account of the capitalisation of the expansion project (upgrading of the terminal and facilities). BIAL recorded a 14 per cent increase in revenue of Rs 182.80 crore for the quarter-ended June 30, 2014 as against Rs 160.72 crore for the corresponding quarter of the previous year.
“Though the new tariff through which we can recover costs has been approved, it’s effective July 1, 2014. In addition to the above, there is a higher depreciation charge of Rs 31.37 crore due to the changed useful life of assets as per the new company’s Act effective April 1, 2014,” GVK said in a statement.
13/08/14 Business Standard
