GMR Airports (GMRINFRA) Q4 05/06 earnings summary

Executive summary

• FY05/06 combined power, road and airport activity delivered consolidated income of Rs 10,904.71m and net profit of Rs 705.49m; the pipeline expanded through airport and highway concessions.

• Standalone results improved as income rose 8.82% and net profit rose 45.79%, mainly from lower finance charges and higher dividend income.

Financial highlights

• Consolidated sales and operating income reached Rs 10,589.58m, up from Rs 9,929.10m; other income was Rs 315.13m versus Rs 285.43m.

• Consolidated net profit was Rs 705.49m versus Rs 690.47m; basic and diluted EPS were Rs 2.67 versus Rs 2.54.

• Standalone total income was Rs 612.87m versus Rs 563.18m; net profit was Rs 355.45m versus Rs 243.81m; EPS was Rs 1.34 versus Rs 0.86.

• Consolidated PBT declined to Rs 1,061.15m from Rs 1,171.24m; interest and finance charges rose to Rs 1,557.77m from Rs 1,129.15m.

Outlook and guidance

• Vemagiri’s 389 MW gas-fired plant was expected to begin commercial operation in July-August 2006; commissioning was delayed by gas supply and equipment issues.

• Hyderabad airport was targeted for operation in Q1 2008; the four new highway projects were expected to enter commercial operation during 2008.

• Growth plans included coal and hydro power, power trading and transmission, captive mining, and further infrastructure bids in India and Asia.