GVK group's holding company GVK Power and Infrastructure Limited (GVK PIL) has reported a consolidated net loss of Rs 304.42 crore for the year ended March 31, 2019 as compared to a consolidated net loss of Rs 537.37 crore in the previous year.

The decline in net loss was due to the absence of losses from jointly controlled entities in the year under review as compared to the previous year when the company reported consolidated net loss contributed solely by the jointly controlled entities, as per the company's profit and loss statement. GVK group has been presenting the consolidated numbers only at the year-end of each financial year with the prior approval of the Ministry of Corporate Affairs.

The company's consolidated total income declined 10.36 per cent to Rs 4363.10 crore for the year ended March 31, 2019, from Rs 4867.43 crore in the previous year while the expenditure remained almost flat. Airports business has contributed Rs 3699.99 crore o the top-line of the company, forming 85 per cent of the total income, during the year. The remaining income came from the roads division.

Referring to its proposed divestment options in the holding company of Mumbai International Airport Limited (MIAL), GVK in a filing stated that it had not considered the airport vertical as 'held for sale' asset at this stage as the firm's purchase agreement with a potential investor had not yet been reached.

"The company is still under discussion on the terms of and conditions of the transactions as at March 31, 2019 and has not reached definitive stage about the terms and conditions that would entail the Firm Purchase Contract. Also, shares of the airport vertical are pledged with various lenders and management is yet to receive approval from lenders with whom the shares are pledged. As par of the divestment process, management has noted that there are certain other significant approvals from Ministry of Civil Aviation, Airport Authority of India and other approvals as necessary are to be received. The management does not have a reliable estimate on the time period in which the Firm Purchase Contract can be signed off," GVK management added.

Recent media reports said that the Hyderabad-based infrastructure conglomerate had offered to sell a near 50 per cent stake in GVK AHL to sovereign wealth funds of Abu Dhabi Investment Authority (ADIA) and the National Investment and Infrastructure Fund (NIIF).

Earlier this year, the GVK Group had invoked the right of first right to acquire stake in GVK AHL from two of its joint venture partners- Bidvest Group and ACSA. Post acquisition, GVK's share-holding in MIAL will go up to 74 per cent from the original 50.5 per cent level. The company needs to find resources to fund acquisition of stake from the above partners in the first place.