GMR Airports (GMRINFRA) Q4 10/11 earnings summary

Executive summary

• FY11 net revenue rose 26.44% to ₹5,773.78 crore and EBITDA rose 14.01% to ₹1,555.49 crore, while net loss after minority interest and associates was ₹929.64 crore.

• Airport traffic gains and new operating assets supported growth; lower gas availability constrained power generation, while higher interest and depreciation weighed on earnings.

• The reported loss included a one-time ₹938.91 crore InterGen-related investment diminution; divestment released ₹958 crore of equity capital for redeployment.

Financial highlights

• Gross revenue increased 25.41% to ₹6,425.04 crore; net revenue increased 26.44% to ₹5,773.78 crore.

• EBITDA grew 14.01% to ₹1,555.49 crore; EBITDA margin fell to 26.94% from 29.88% YoY.

• PAT before minority interest and associates was a loss of ₹1,046.67 crore versus profit of ₹225.34 crore; net loss after minority interest and associates was ₹929.64 crore versus profit of ₹158.40 crore.

• Adjusted for the ₹938.91 crore one-time InterGen investment provision and ₹140.33 crore write-back, reported results included significant exceptional items.

• Total assets reached ₹41,327.45 crore, up 29.99%; net worth was ₹11,480.24 crore, up 32.62%.

Outlook and guidance

• Delhi airport passenger traffic forecast: 8–10% growth in FY12 and 10% p.a. for the following two years; cargo forecast 14% in FY12 and ~12% p.a. for the next two years.

• Hyderabad airport passenger traffic was expected to grow 12–14% and cargo tonnage 16% in FY12.

• Rajahmundry, Kamalanga and EMCO thermal projects were due to begin commercial operations in 2012; Indonesian coal production was expected to start in FY12.

• The 25 MW Gujarat solar project was under construction, with completion expected in FY12; road bids focused on longer stretches and higher-traffic opportunities.

• First-phase Krishnagiri SEZ activity was expected to commence in FY12; Hyderabad Aerotropolis investments in selected themes were also expected to begin in FY12.