Shares of GMR Airports Infrastructure gained 2 percent to the day’s high of Rs 56 on October 31 after the company’s consolidated net loss reduced to Rs 190 crore in the July-September quarter (Q2FY24) as against Rs 197 crore a year ago. The S&P BSE Sensex was down 205 points or 0.3 percent to 63,907 as of 10:50am.
So far this year, the stock of GMR Airport soared 38 percent as against a 5 percent rise in the benchmark Sensex. Earlier, the GMR Airport scrip touched a 52-week high of Rs 66 per share on August 25, 2023.
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The company’s total income surged 25 percent on-year to Rs 1,607 crore in Q2FY24 on the back of strong growth in traffic. Total passenger traffic during the quarter increased 25 percent on-year to 26.5 million.
While Delhi’s passenger traffic surged 18 percent on-year, Hyderabad saw a jump of 24 percent in the quarter.
GMR Airports’ earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 34 percent on-year to Rs 848 crore in Q2FY24.
GMR Airports Infra is one of the largest Indian airport developers and operators with a huge portfolio of assets across energy, transport and urban infra sectors. It operates two of India’s largest airports – Delhi and Hyderabad – which handled 25-28 percent of all India passenger traffic in the past decade.
In an earlier note, analysts at ICICI Securities shared a ‘hold’ rating on the counter, estimating that the airports business will achieve net profitability by FY25.
“The company’s ongoing demerger process will separate airport and non-airport businesses, which is expected to unlock value and simplify the corporate structure. GMR Airport’s recent focus on debt reduction has been successful, helped by Groupe ADP partnership and asset monetisation or sale,” the brokerage firm said.
While the airport business will remain listed under GMR Airport Infra (GMRI), non-airport businesses will be merged into GMR Power and Urban Infra (GPUIL) and separately listed. All existing GMRI shareholders will get GPUIL shares in the same proportion, and for every ten GMRI shares, one share of GPUIL will be issued, analysts added.
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