GMR Infra stock hits new all-time high after Q4 loss narrows to Rs725cr

The company's gross revenue was at Rs2,321cr in Q4FY21 slightly lower from Rs2,349cr of Q4FY20 but higher from Rs1,481cr of Q3FY21.

Jun 21, 2021 03:06 IST India Infoline News Service

GMR Infrastructure stock hit a new 52-week high on Monday after the company's net loss narrowed to Rs725cr in the fourth quarter ending March 2021 (Q4FY21) against a net loss of Rs1,127cr a year ago same period. Q4 loss also narrowed from Rs1,119cr of the preceding quarter.

The company's gross revenue was at Rs2,321cr in Q4FY21 slightly lower from Rs2,349cr of Q4FY20 but higher from Rs1,481cr of Q3FY21.

GMR in its audit report highlighted that since May 2020, when the restrictions were lifted on operations of domestic flights, airports business saw significant traction in traffic. February 2021 was the best month post first wave of covid when the passenger traffic reached 60% of pre-covid levels at Delhi Airport and 64% at Hyderabad airport and this was achieved under an environment of restricted airline capacity enforced by the Government.

The government had allowed 33% capacity for the airlines from May 25, 2020, till June 25, 2020, and has gradually raised the capacity to 80% on December 4, 2020. This suggests passenger confidence to travel increases with the decline in covid cases.

GMR further said that "with the onset of second covid wave, traffic declined in April 2021 and May 2021. However, we are now experiencing traffic turnaround from last week of May 2021 and continued recovery in June 2021. During 2nd weekend of June 2021, Delhi and Hyderabad airports registered a traffic of ~47,200 and ~15,800. This is encouraging considering Govt. of India imposed curb on the capacity for the airlines at 50% from June 1, 2021."

On Sensex, GMR closed at Rs30.90 per piece up by 9.8% after touching a new 52-week high of Rs31.60 per piece in the early deals. 

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