GMR Airports (GMRINFRA) Q4 09/10 earnings summary

Executive summary

• FY10 consolidated net revenue rose 13.62% YoY to Rs. 4,566.51 crore; EBITDA increased 27.89% to Rs. 1,364.31 crore, while net profit after minority interest and associate losses fell 43.32% to Rs. 158.40 crore.

• Delivery milestones included completion of Delhi Terminal 3, early opening of Istanbul’s new terminal, two power-project acquisitions totaling 1,970 MW, and three new highway concessions.

• Expansion across airports, power, roads and urban infrastructure continued alongside substantial project investment and financing activity.

Financial highlights

• Consolidated gross revenue was Rs. 5,123.42 crore, up 14.46% YoY; net revenue was Rs. 4,566.51 crore, up 13.62%.

• EBITDA rose 27.89% to Rs. 1,364.31 crore; cash profit increased 14.10% to Rs. 734.61 crore.

• Profit before tax and minority interest fell 41.5% to Rs. 193.13 crore; PAT before minority interest and associate losses fell 18.68% to Rs. 225.34 crore.

• Net profit after minority interest and associate losses declined 43.32% to Rs. 158.40 crore; EPS was Rs. 0.43 versus Rs. 0.77, on Re. 1 face-value shares.

• Total assets increased 42.59% to Rs. 31,793.20 crore; net worth rose 4.59% to Rs. 8,657.21 crore.

Outlook and guidance

• Delhi Terminal 3 was scheduled to commence commercial operations in July 2010; Kakinada’s relocated 220 MW gas-fired plant was expected to begin operations by July 2010.

• Power projects in construction were targeted for commercial operation from 2012 to 2014; 2010-11 priorities included execution, asset optimization, further acquisitions and fuel-security investments.

• Delhi hospitality development and Hyderabad aerotropolis plans were to advance; the first phase of Krishnagiri SEZ was expected to commence during FY11.

• Airport plans focused on commercial revenue growth, passenger experience and Hyderabad MRO development, with first-phase operations targeted for July 2011.