GMR Airports (GMRINFRA) Q4 11/12 earnings summary

Executive summary

• FY12 was marked by macroeconomic volatility and infrastructure-sector headwinds; consolidated revenue rose 31.05% YoY, while the after-minority net loss narrowed to Rs. 603.34 crore from Rs. 929.64 crore.

• Delayed Delhi airport aeronautical tariff revision, restricted gas supply and currency, interest-rate and capital-market volatility weighed on results.

• Strategy emphasized completing projects, improving cash conversion and risk controls, maximizing asset revenues, and exploring asset-light and quicker-cash-flow models.

Financial highlights

• Consolidated revenue from operations was Rs. 8,473.03 crore, up 31.05% YoY; EBITDA was Rs. 1,758.23 crore, up 13% YoY.

• Consolidated loss before minority interest and associates was Rs. 1,058.84 crore; net loss after minority interest was Rs. 603.34 crore vs. Rs. 929.64 crore in FY11.

• Basic and diluted EPS was negative Rs. 1.55 vs. negative Rs. 2.40 in FY11.

• Standalone revenue rose 90% to Rs. 1,381.87 crore; EBITDA increased to Rs. 297.37 crore from Rs. 239.56 crore and PAT to Rs. 120.30 crore from Rs. 58.88 crore.

• Adjusted for the Rs. 48.15 crore toll-road amortization write-back, FY12 loss was lower by that amount; DIAL’s Rs. 162.12 crore development-fund borrowing interest was a one-time exceptional expense.

Outlook and guidance

• Delhi and Hyderabad airport passenger traffic was projected to grow 9–11% in FY13; Malé international passenger traffic 8–10%; Istanbul passenger traffic 16–18%.

• Kamalanga and EMCO plants were expected to begin commercial operations in FY13; priorities included timely, on-budget delivery, fuel security and stabilizing new plants.

• FY13 road priorities included commissioning projects, securing toll and annuity income, and progressing the 555.5 km Kishangarh–Udaipur–Ahmedabad project.

• No dividend was recommended for FY12 to conserve funds for projects in development, expansion and implementation.

• An AGM resolution proposed authority to issue securities of up to Rs. 2,500 crore for project expenditure, contingencies and new opportunities.