GMR Infrastructure's net loss widens to Rs 441 crore in December quarter

HYDERABAD: GMR Infrastructure today said its net loss for the quarter ended December 31 widened to Rs 441 crore on account of losses in the group's energy business.

This is third consecutive quarter loss for the infrastructure major in the current fiscal.

Net loss for the third quarter during the last fiscal was at Rs 217 crore.

According to a statement issued by GMR, gross revenues for the quarter under discussion stood at Rs 2,638 crore against Rs 2,382 crore during the same quarter last year.

Group chairman G M Rao said the macroeconomic environment in India continues to be challenging, and inflation and consequently high interest rates continue to pose obstacles to growth and profitability.

"Our airports and highways assets are stable; however, our results continue to be impacted by the challenges in energy sector, particularly fuel unavailability and constraints on transmission. We look forward to policy changes to solve these and other issues facing the infrastructure sector," Rao said.

Energy segment of the group suffered Rs 333 crore loss during the third quarter despite increased revenues. The segment garnered Rs 762 crore revenues during the October- December quarter against Rs 529 crore in the Q3 of FY'13.

"The loss in the current quarter has marginally increased to Rs 414 crore mainly due to commissioning of 2nd Unit of EMCO in September 2013 and 2nd unit of Kamalanga in November 2013. EMCO and Kamalanga plants are in its initial phase of operation and on stabilisation the performance is expected to improve in the coming quarters," GMR statement said.

Group's airports segment reported Rs 50 crore profit (before minority tax) during the quarter on Rs 1,605 crore revenues. The vertical suffered Rs one crore loss during the third quarter of last year on Rs 1,599 crore income.

GMR signed a definitive agreement for the divestment of the Istanbul Sabiha Gocken International Airport (ISGIA) during the quarter.

GMR's Highways vertical suffered Rs 52 crore loss during the third quarter on Rs 163 crore revenues.