GVK Power & Infrastructure Ltd hopes to stage a turnaround by the next fiscal, with several new projects having gone on stream and some more likely to follow suit during the year.
The diversified Hyderabad-based infrastructure company, with interests in power, airports, roads, mining, etc, managed to trim its losses during the first quarter following the commissioning of a hydel project and improved performance of the airport vertical.
In an interaction with BusinessLine here, GVK Reddy, Chairman of the GVK Group, spoke about why the company faced losses, and how it expects to step out of them. Excerpts:
How do you expect to drive out of the current tough business environment?
We are confident of overcoming this difficult phase.
With the commencement of operations of the 330 MW Alaknanda hydel project in June 2015, and the likely commissioning of the Goindwal Sahib thermal project in Punjab and the commencement of toll collection at the Deoli-Kota road project, things will get better.
The Goindwal project is subject to allocation of coal, and the road project, to toll collection. Further, during the current fiscal, we expect domestic operations will start at the new integrated Terminal 2 at Mumbai International Airport.
What are the main reasons for the losses? How will you address them?
The losses are mainly due to a significant drop in power generation from the gas-based plants and increase in interest burden on the funds borrowed to acquire airport assets.
The company is in the process of bringing down its debt this financial year, mainly through the divestment of stakes in airports.
The revenues from these projects, along with the efforts of the management to raise funds in the airport vertical, are expected to bring down the losses considerably from the next financial year.
19/08/15 V Rishi Kumar/Business Line
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The diversified Hyderabad-based infrastructure company, with interests in power, airports, roads, mining, etc, managed to trim its losses during the first quarter following the commissioning of a hydel project and improved performance of the airport vertical.
In an interaction with BusinessLine here, GVK Reddy, Chairman of the GVK Group, spoke about why the company faced losses, and how it expects to step out of them. Excerpts:
How do you expect to drive out of the current tough business environment?
We are confident of overcoming this difficult phase.
With the commencement of operations of the 330 MW Alaknanda hydel project in June 2015, and the likely commissioning of the Goindwal Sahib thermal project in Punjab and the commencement of toll collection at the Deoli-Kota road project, things will get better.
The Goindwal project is subject to allocation of coal, and the road project, to toll collection. Further, during the current fiscal, we expect domestic operations will start at the new integrated Terminal 2 at Mumbai International Airport.
What are the main reasons for the losses? How will you address them?
The losses are mainly due to a significant drop in power generation from the gas-based plants and increase in interest burden on the funds borrowed to acquire airport assets.
The company is in the process of bringing down its debt this financial year, mainly through the divestment of stakes in airports.
The revenues from these projects, along with the efforts of the management to raise funds in the airport vertical, are expected to bring down the losses considerably from the next financial year.
19/08/15 V Rishi Kumar/Business Line
