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GMR Infra's Q4 loss may shrink on airport biz revival

GMR's Q4 loss will shrink significantly on revival in airport business

May 30, 2013 / 14:01 IST
 
 
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Moneycontrol Bureau


GMR Infrastructure is expected to narrow down loss March quarter as its airport division has started to show up good performance. The Hyderabad firm which has three business verticals including roads, airports and power has reported Rs 366 crore in the year-ago period.


Read This: Why GMR Infra is keen to sell shares in airport biz


According to CNBC-TV18 poll, the firm is likely to report net loss of Rs 164 crore in the March quarter and total income may decline 4 percent year-on-year to Rs 2050 come-on lower volumes in power segment.


Factors that will drive GMRs Q4 numbers


Lower losses will be driven by improvement in operating profits at Delhi airport as the firm has started charging higher tariff.


Low gas availability is expected to continue to hurt profitability of power vertical


Positives of Q4 results include ----  tariff hike at Delhi airport and commissioning of two road projects.


Negatives of Q4 include ---- Loss of revenue from Male Airport (Rs 150 – 200 crore of quarterly run rate) and  lower utilizations at 808 megawatt gas projects


Also the company's 220 MW Kakinada plant did not contribute to generation in Feb-Mar 2013


Expect 30 percent YoY increase in interest expenses


Results could include an exceptional item of Rs 130 crore – from the profits from sale of stake in Island power


 In Q4, the company closed three asset sales – to pare debt which stands at a staggering Rs 35,000 crore.


As part of  'Asset Light – Asset Right' Strategy, the firm is looking to monetize non-core assets to offload debt


Asset Sales conducted in GMR Energy, Singapore & Homeland Energy & Jadcherla expressway project.

Resulted in cash surplus of Rs 2,000 crore and reduction in gross debt by Rs 4,200 crore


Ahead of earnings announcement, GMR shares are quoting at Rs 20.40, down Rs 3.32 percent. The stock has climbed over 13 percent in the past six months as against 5.10 percent rise in Sensex

first published: May 30, 2013 01:04 pm

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