GMR Infrastructure Ltd has posted a net loss after tax and minority interest and share of profit from associates of Rs (1079.50) mn for the quarter ended December 31, 2011 as compared to Net Loss of Rs (222.50) mn for the quarter ended December 31, 2010.
Total Income has increased from Rs 14040.90 mn for the quarter ended December 31, 2010 to Rs 20944.50 mn for the quarter ended December 31, 2011.
The Quarter witnessed a continued surge in the net revenues by 47%, despite lower PLF in Energy sector due to lower gas availability for both the operating gas projects and major maintenance shutdown of Vemagiri Power. Energy sector also suffered loss of revenue due to floods in its South Africa Coal Mine.
The increase in EBITDA is subdued at 19.4% mostly due to the following exceptional reasons:
Due to uncertainty of the timely collection of the trade receivables from National Aviation Company India Limited (NACIL), effective from 01st October 2011, DIAL and GHIAL have started accounting receivables from NACIL on receipt basis. This has adversely impacted the gross revenue by about Rs.50 crore in both the airports together.
Charge of Rs.10 crore towards the non-recovery of ADF collection charges in DIAL.
Provision of Rs.19 crore in GEL towards the receivables from BPCL, pending the settlement of a dispute.
Payment of customs duty of Rs.19 crore by GEL under protest for the import of replacement hotpath of a Gas Turbine.
The loss of Rs. 229 crore incurred by Delhi Airport for the quarter, pending tariff revision, coupled with the aforesaid exceptional items and an interest charge of Rs. 17 crore on account of loan borrowed for Sinar Mas acquisition, corresponding revenues of which will be consolidated from next quarter, resulted in the increased consolidated loss at Rs.108 crore for the quarter. With the tariff revision process for Delhi Airport having commenced consequent to the issue of Consultation Paper by AERA, the adverse impact of DIAL’s results on the profitability of the company would soon be mitigated.
The operating toll road projects recorded a revenue growth of 8% for the quarter. The Highways segment is nearing the breakeven PAT position, despite the crippling losses in Ambala Chandigarh project due to massive traffic diversion. The company is legally contesting the development of an alternative road, resulting in the said diversion.
Commenting on the performance during the Quarter, G M Rao, Group Chairman, said:“We are immensely happy that the tariff revision process for DIAL is coming to a closure, with AERA having issued the Consultation Paper. The implementation of the revised tariff, expected soon, will be an extremely significant development for DIAL and for the Company as it would shift the company towards stronger cash flows and Profitability. With the Union Government meeting various stakeholders in the power sector recently, we are confident that several bottlenecks the sector is reeling under currently will soon be removed through time bound action plan being coordinated through a newly formed Committee of Secretaries.The imminent tariff revision for DIAL together the Government’s initiatives for resolution of the power sector concerns would make our journey heartening in terms of cash flows and profitability. We are also happy to report the closure of 30% equity stake sale in our 800 MW Singapore Power Project to Petronas International Corporation, marking the beginning of a remarkable partnership. Our baby steps in renewable energy space got bigger with the commissioning of a 25 MW solar power plant in Gujarat, where we earlier commissioned a 2.1 MW wind power plant. Our preparations are well under way to take over the operations of the mega project ‘Kishangarh – Udaipur – Ahmedabad expressway’ from May 2012, which will give significant cash flow from Day One.
We are watchful of the uncertain global economic environment and the ups and downs of the local economy. We are focusing on making our internal operations reach the next level of efficiency, through our Business Excellence framework, aligned to Malcolm Baldridge Quality model. Our focus is on cash and we are putting high emphasis on sweating our assets. This is already yielding good results.”
GMR Airports Business consists of 2 Indian airports at Delhi and Hyderabad and 2 airports abroad at Istanbul in Turkey and Male in Maldives. Despite a significant growth in the EBITDA, the Sector continues to post losses due to pending tariff revision for Delhi Airport.
Briefly presented below are the significant developments in these 4 assets during the Quarter:
Delhi International Airport (DIAL)
Witnessed a traffic growth of 29% for the quarter and 24% the 9 months. Registered a passenger traffic volume of 9.96 million for the quarter and 27.01 million for 9 months.
Achieved an EBITDA margin of 26% for the quarter
ASQ scores improved from 4.70 to 4.72.
Was ranked 6th worldwide out of 180 airports. Also, ranked 2nd out of 20 airports in the 25-40 mppa category.
Recorded ATMs of 82,840 for the quarter and 2 35,950 for 9 months.
GMR Hyderabad International Airport (GHIAL)
Witnessed a traffic growth of 12% for the quarter and 14% the 9 months. Registered a passenger traffic volume of 2.27 million for the quarter and 6.48 million for 9 months
Achieved an EBITDA margin of 64%
Recorded ATMs of 26,180 and 74,480 for 9 months
Istanbul Sabiha Gokcen International Airport (ISGIA)
Witnessed a traffic growth of 6% for the quarter and 15% the 9 months. Registered a passenger traffic volume of 3.20 million for the quarter and 10.84 million for 9 months
Achieved an EBITDA margin of 53% for airport operations and 6% for fuel operations.
Recorded ATMs of 27,660 and 92,340 for 9 months
Male International Airport (MIAL)
Witnessed a traffic growth of 27% on sequential quarter basis. Registered a passenger traffic volume of 0.76 million for the quarter and 1.93 million for 9 months
4 new airlines services were added to Chongqing, France, Rome and Hong Kong.
ASQ rating has improved from 3.25 in Sept to 3.56 in Nov.
GMR Energy Business consists of 5 operating assets (including 2.1 MW wind power and newly commissioned 25 MW Solar Project in Gujarat on 31st Dec 2011) with a cumulative capacity of 835.6 MW and 5 generation projects under construction with an aggregate capacity of 4938 MW. Of this new capacity, 2418 MW is scheduled to be commissioned within the next 12 months. In addition 2 transmission projects are also under construction.
During the Quarter, the following are notable developments:
Commissioned the 25 MW Gujarat Solar Power project in December 2011 as scheduled.
Financial Closure for Maru Transmission Service Company Ltd and Aravali Transmission Service Company Ltd.
Receipt of Environment clearance for the 300 MW Badrinath hydro projects at Uttarakhand.
Receipt of Environment clearance for the 350 MW expansion of Kamalanga project.
GMR Highways Business consists of 6 operating assets (3 toll and 3 annuity) with total of 1,684 lane kilometers, 3 projects (2 toll and 1 annuity) under construction with a total of 1294 lane kilometers and a toll project of 3,330 lane kilometers under development for which financial closure is in progress.
The Operating Toll projects registered a traffic growth of 3% for the quarter and 6% for the 9 months.