GMR In­fra’s Q4 Net Dou­bles on As­set Sales

The Economic Times - - Companies - OUR BUREAU

Ban­ga­lore-based GMR In­fra­struc­ture’s quar­terly net profit dou­bled to .` 1,170 crore, propped up by as­set sales, but the com­pany ex­pects op­er­a­tional in­come to in­crease in the fu­ture as it hopes the new govern­ment’s poli­cies will catal­yse sec­tors such as high­ways, en­ergy and avi­a­tion. The com­pany’s gross rev­enue rose 12.42% to .` 2,961 crore for the quar­ter ended March.

“The profit is com­ing out of ex­cep­tional items, as­set sales. In fu­ture we ex­pect the profit to come from com­pany oper­a­tion. Divest­ment of Turkey air­port gen­er­ated .` 1,670 crore of cash profit and made the op­er­at­ing re­sults at­trac­tive for the group,” said Madhu Terdal, group CFO, GMR In­fra­struc­ture. The firm di­vested our 40% stake in Sabiha Gok­cen Air­port in Is­tan­bul last year.

On a con­sol­i­dated ba­sis, com­pany’s net profit slumped to .` 10 crore for the full year as op­posed to .` 88 crore for the year ended March 2013.

The to­tal gross in­come in­creased by 6.36% to .` 10,653 crore in the year ended March 2014 against the same pe­riod last year. GMR’s air­port di­vi­sion re­ported .` 1,291crore profit against .` 79 crore due to stake sale in Turkey Air­port, while rev­enue fell 11.8% to .` 1,548 core com­pared to the same pe­riod last year.

How­ever, the com­pany’s power and road busi­ness re­ported a loss of .` 364 crore and .` 69 crore each.

“Dif­fi­cult times are over and we ex­pect the per­for­mance to im­prove in the com­ing year. We are op­ti­mistic that with the new govern­ment, there will be re­cov­ery in the In­fra­struc­ture sec­tor, and we are well placed to take part in this phase, though we will be se­lec­tive,” says Terdal.

GMR in­fra­struc­ture sold as­sets such as Turkey Air­port, GMR Jad­cherla ex­press­way, Eloff and Ken­dal mines of Home­land En­ergy and Sin­ga­pore power plant for .` 10,000 crore last fis­cal. “We re­alised .` 4,900 crore of eq­uity through as­set sale and were able to bring down debt by .` 6,000 crore. While we sold as­sets, the com­pany also cre­ated as­sets of .` 10,000 crore dur­ing the same pe­riod,” Terdal said. GMR In­fra­struc­ture, which has .` 37,700-crore net debt, has been stressed in the past cou­ple of years. It is now look­ing to em­bark on the next level of divest­ment by sell­ing around 200 acres of real es­tate at Delhi In­ter­na­tional Air­port in phases and other as­sets it holds. “Long-term growth will come from re­duc­ing cor­po­rate debt and in­ter­est rate apart from im­prov­ing op­er­a­tional per­for­mances. We ex­pect to re­duce cor­po­rate debt by .` 1,500 crore in the com­ing quar­ter,” says Terdal. The com­pany had a cor­po­rate debt of .` 6,000 crore as on March 31. GMR stock closed flat at .` 33.40 on the BSE, in line with the bench­mark in­dex that was down 0.07%.

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