GMR Infrastructure Suffers Greater Loss in July-September Quarter
The Bengaluru based publicly held infrastructure developer, GMR infrastructure has suffered a greater loss in the July-September quarter of this year amounting to Rs.610 crore. This is 1.5 times greater than its net loss of Rs.393 crore for the corresponding quarter last year.
Reasons for Loss: There have been a number of reasons cited for the widening of net loss of the Bengaluru based publicly held infrastructure developer, GMR; whose estimated amount has been Rs.610 crore in the July-September quarter of this year. However the primary two reasons cited are
- Non availability of gas on the Eastern coast of India which is required to fuel the power plants that have now become almost idle
- Increasing burden of debt under which the company is wilting under a leverage of 3.5 times at Rs 40,000 crore
Revenue Sources: In trying to cope with the debt, the GMR has managed to give some impetus to their revenues through the increased footfall of people at Delhi and Hyderabad airports which are managed by the GMR. This source is said to have grown by 11 per cent and amounted to Rs.2682 crore. The revenue increase is also backed by revenues from two of its fledgling coal-fired plants that are still in its stabilisation phase.
The profit acquired from other airports such as those in Turkey and Ulunderpet Expressways have not been accounted for in the estimate provided in this quarter. The reason for this was cited as the divestment of the projects, as stated by GMR Infrastructure.
Delhi and Hyderabad airports have also witnessed an increase in traffic growth which is said to be partially responsible in giving a boost the revenue coming from EMCO and Kamalanga.
Profit Estimates: The operating profit for this quarter has been estimated to be Rs590 crore, which is an increase by 2 per cent while Rs.1172 for the half year from Rs.1203 crore, an increase by 3 per cent.
Future Plans: GMR Infrastructure plans to launch an Rs.1500 crore rights issue in the coming future. It also plans to offload its stakes or some of its full projects that it believes can address its debt issues.
Source: Business Standard
