GMR Infra's Q4 loss may shrink on airport biz revival
GMR's Q4 loss will shrink significantly on revival in airport business
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 bizAccording 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 numbersLower 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 verticalPositives 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 projectsAlso the company's 220 MW Kakinada plant did not contribute to generation in Feb-Mar 2013Expect 30 percent YoY increase in interest expensesResults 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 debtAsset 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 croreAhead 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
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