GMR Airports (GMRINFRA) Q4 12/13 earnings summary

Executive summary

• FY13 strategy shifted from asset growth to cash growth through Asset Light–Asset Right: improve existing asset efficiency, divest mature or value-eroding assets, and redeploy capital to higher-return opportunities.

• Airport operations strengthened despite weaker Indian air traffic; portfolio divestments and new project commissioning supported liquidity and future revenue capacity.

• Consolidated revenue from operations rose 17.72% to ₹9,974.86 crore; net profit after minority interest was ₹88.12 crore, versus a ₹603.34 crore loss in FY12.

Financial highlights

• Revenue from operations ₹9,974.86 crore, up 17.72% YoY; revenue after concessionaire share ₹8,305 crore, versus ₹7,642 crore in FY12.

• EBITDA ₹2,608 crore versus ₹1,758 crore; EBITDA margin on net revenue 31% versus 23% in FY12.

• Net profit after minority interest ₹88.12 crore versus a ₹603.34 crore loss; EPS ₹0.23 versus negative ₹1.55.

• Reported PBT ₹392.85 crore versus a ₹848.12 crore loss; excluding exceptional items, the period recorded a ₹384.42 crore loss before tax and minority interest.

• Exceptional items included ₹1,231.25 crore profit on Singapore power divestment, ₹251.37 crore impairment and ₹202.61 crore Male airport asset write-off; FY12 included ₹162.12 crore interest expense tied to development-fee borrowings.

Outlook and guidance

• FY14 commissioning plan: Warora Unit 2 (300 MW), Kamalanga Units 2 and 3 (350 MW each), Chhattisgarh Unit 1 (685 MW), and completion of the 29.7 km Chennai Outer Ring Road.

• FY14 traffic outlook: Delhi airport passengers ~6%, Hyderabad passengers 4–5%, and Istanbul Sabiha Gökçen traffic 19%; forecasts were management expectations.

• Energy priorities include completing projects within budget, improving fuel mix and operating efficiency, recycling capital, and raising profitability, liquidity and accountability.

• Highway operations are expected to shift from project delivery toward asset management, emphasizing safety, quality, lane availability and cost-effective service.