GMR Infrastructure (GMR) reported INR49mn profit for Q4FY18, aided by: (a) recognition of additional ~INR6.3bn revenue in Kamalanga and EMCO, post a favourable CERC order; and (b) higher profits at Hyderabad Airport (HIAL) and Indonesian coal mine (PT GEMS). On operational front, traffic improved 12-25% YoY on the company’s three operational airports; also, the Kamalanga and EMCO plants are witnessing higher PLFs and lower interest costs. Delhi Airport (DIAL) also saw favourable regulatory actions, which are likely to significantly enhance long term value.
OutlookImprovement in cash flow trajectory, finalisation of tariff orders for airports and asset monetisation will be key stock drivers, in our view. Maintain 'BUY' with SoTP-based target price of INR29.
For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
