GMR Airports (GMRINFRA) Q4 04/05 earnings summary

Executive summary

• Consolidated revenue was ₹9,929.10 million, up from ₹9,732.77 million; net profit after minority interest and associate share was ₹690.47 million versus ₹680.00 million.

• Power operations remained profitable, while roads began receiving NHAI annuities in FY06; airport and Vemagiri power projects were under development.

• Parent-level income and profit declined after competency-pool services moved to a subsidiary and dividend income fell; refinancing reduced the effective interest burden from 14% to 8%.

Financial highlights

• Consolidated sales and operating income reached ₹9,929.10 million versus ₹9,732.77 million; PBT before minority interest and associate share was ₹1,171.24 million versus ₹1,056.16 million.

• Consolidated net profit after minority interest and associate share was ₹690.47 million versus ₹680.00 million; basic EPS was ₹4.23 versus ₹4.12, and diluted EPS ₹4.23 versus ₹3.69.

• Parent gross income fell 49.37% to ₹5,631.84 lakh; reported PAT was ₹2,438.06 lakh versus ₹5,746.66 lakh in FY04.

• GMR Energy PAT rose to ₹8,015.21 lakh from ₹7,606.02 lakh; GMR Power Corporation PAT rose to ₹3,635.82 lakh from ₹3,229.02 lakh, including a deferred-tax reversal.

• Consolidated operating cash flow was ₹5,989.97 million; investing cash outflow was ₹9,724.54 million and financing inflow ₹3,433.12 million, reducing cash by ₹301.45 million.

Outlook and guidance

• Vemagiri project targeted commercial operation by end-December 2005; progress was 86.05% at end-April 2005, with commissioning activities under way.

• Hyderabad airport targeted financial closure and finalization of major construction tenders by July 2005, with commercial operations targeted for 2008.

• Power expansion strategy emphasized competitively priced coal, natural gas and hydro projects, with most capacity under contracted sales and remaining capacity available for trading.

• New opportunities included a 1,000 MW coal project with in-principle Madhya Pradesh approval and a 140 MW Alaknanda hydro project awarded in May 2005.