GMR Infrastructure reports Rs 94 crore net loss

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GMR Infrastructure on Friday reported a consolidated net loss of Rs 94 crore for the quarter ended June 30, 2012, mainly on account of losses at DIAL and one-time tax asset reversal at GVPGL (Vemagiri power plant).

Gross revenues of the company rose to Rs 2,562 crore in the quarter under review from Rs 2,090 crore in the same qaurter last year.

Loss for the quarter reduced significantly as compared to the previous quarter ended March, 2012 (Rs 366 crore) on account of improved revenue and EBIDTA from all sectors, GMR Group president and CFO Subba Rao told reporters here.

The losses at DIAL have shown a significant downturn post sanction of ADF (Airport Development Fee) and revision of tariff rates, Rao said.

The profitability of DIAL is expected to further improve in next quarters on account of applicability of the revised tariff for the full period.

With the consistent improvement in margin at airports, the EBIDTA margins showed increase over the corresponding quarter, he said.

"During the quarter DIAL has implemented the new tariff for aero charges as approved by AERA which has improved overall performance of DIAL and consequently our Airport sector. While growth in revenues of airport and highways sectors is in line with our plans, non-availability of gas for the power plants has impacted the topline for energy sector," Rao said.

The losses in energy segment were mainly due to lower gas availability in Kakinada and Vemagiri plants, Rao said.

Increase in engineering-procurement-construction (EPC) division turnover and higher aero revenue at DIAL (Delhi International Airport Pvt Ltd) contributed to the revenue growth, he said.

Renewable energy sources contributed to Rs 16 crore revenue during the quarter and GEL (Barge mounted power plant in Kakinada) entered into year-long PPA with AP Discom,he said.

In highways segment, traffic in toll roads grew by six per cent as compared to the corresponding quarter and toll revenues by 12 per cent.

Amid tight liquidity conditions, the company was able to secure financial closure for its Kishangarh-Udaipur-Ahmedabad Highways project and other funding requirements of projects were being adequately taken care of, Rao said.

The new tariff for aero charges at DIAL came into effect from May 15 and traffic at all airports posted positive growth even amid concerns on airline industry as well as economic growth, Rao said.

GMR MAS Aero Technic has signed MOUs with Spicejet, Go Air, Kingfisher and Investec for servicing of their aircraft and Phase 1A modifications in domestic departure terminal at Rajiv Gandhi International Airport (RGIA), Hyderabad had been completed and opened for passengers, he said.

A new Cargo complex was inaugurated at Male airport, Rao said.

The three highway projects under implementation (Hyderabad-Vijayawada, Hungund-Hospet and Chennai Outer Ring Road) were progressing as per plan and expected to be commissioned during the current financial year.

With increased tariff in DIAL for full period, scheduled commissioning of coal-based power projects in the coming months and commencement of toll collection from three new road projects, the company was confident of further improvement in results in coming quarters.

Further, speedy action on policy front would enable the group to implement its ongoing projects efficiently and likely softening of interest rates would have positive impact on the bottom-line in the coming quarters, Rao said.