GMR Airports (GMRINFRA) Q4 07/08 earnings summary

Executive summary

• FY08 consolidated gross revenue rose 39.28% to ₹2,767.66 crore; net revenue increased 37.87% to ₹2,364.53 crore, while EBITDA grew 18.90% to ₹668.25 crore.

• Consolidated PAT before minority interest was ₹262.65 crore, up 8.64%; net profit after minority interest and associate share rose 20.44% to ₹210.08 crore.

• Hyderabad’s greenfield airport began commercial operations in March 2008; international expansion and a large domestic project pipeline broadened exposure across airports, power, roads and urban infrastructure.

Financial highlights

• Gross revenue increased from ₹1,987.05 crore to ₹2,767.66 crore; net revenue rose from ₹1,715.07 crore to ₹2,364.53 crore.

• EBITDA grew to ₹668.25 crore from ₹562.01 crore; PAT before minority interest increased to ₹262.65 crore from ₹241.77 crore.

• Profit before tax rose to ₹321.03 crore from ₹283.31 crore; EPS increased to ₹1.23 from ₹1.11 after adjusting share counts for the share subdivision and QIP issuance.

• Standalone revenue was ₹112.20 crore and PAT ₹62.70 crore, primarily reflecting treasury income on surplus QIP proceeds.

• Excluding one-time airport pre-operative and inception costs and the ₹25 crore DIAL provision for estimated Sixth Pay Commission arrears, reported expenditure included significant non-recurring items.

Outlook and guidance

• Projects in the pipeline were expected to lift revenue and profitability as assets commenced operations and existing operations consolidated over the following years.

• Four highway projects under construction were expected to be commissioned during FY09; commissioning was projected to generate steady revenues.

• Delhi airport’s Phase 1 upgrades were scheduled in stages through 2010; the third runway was expected in 2008 and the integrated terminal by March 2010.

• Vemagiri was expected to resume sustained operations in H2 FY09, subject to regular gas availability.

• Planned investment across domestic and international projects was approximately ₹40,000 crore over the next 3–5 years; project execution and funding were key priorities.