GMR Power And Urban Infra (GMRP&UI) Q3 23/24 earnings summary

Executive summary

• Q3FY24 results included full consolidation of GEL after control was acquired on Nov. 22, 2023; continuing-operations PAT was Rs. 43.17 crore, including exceptional income.

• Coal plants recorded high utilization and toll-road traffic increased; growth initiatives included a prepaid smart-metering contract covering 75.69 lakh meters in Uttar Pradesh.

• 9MFY24 reported a Rs. 297.86 crore loss after tax, versus profit of Rs. 1,610.15 crore a year earlier; significant unsettled claims and liquidity pressures remained.

Financial highlights

• Q3FY24 consolidated revenue was Rs. 1,102.79 crore vs Rs. 1,442.97 crore YoY; total income was INR 12.092 bn vs INR 14.991 bn.

• Q3FY24 EBITDA was Rs. 402.59 crore vs Rs. 203.54 crore YoY; margin was 35% vs 14%.

• Continuing-operations PAT was Rs. 43.17 crore in Q3FY24, including INR 2.207 bn exceptional income; 9MFY24 continuing-operations loss was Rs. 281.67 crore vs profit of Rs. 1,636.87 crore.

• 9MFY24 consolidated revenue was Rs. 2,854.50 crore vs Rs. 4,092.37 crore; EBITDA was Rs. 832.91 crore vs Rs. 556.97 crore.

• Standalone Q3FY24 revenue was Rs. 168.72 crore and PAT Rs. 308.26 crore; 9M revenue was Rs. 628.80 crore and PAT Rs. 275.91 crore.

Outlook and guidance

• AMI contracts cover installation, integration and maintenance of 75.69 lakh prepaid meters across 22 UP districts; implementation is scheduled over 27 months, followed by 93 months of operations.

• DFC packages 201 and 202 were 97.89% and 98.59% complete at Dec. 31, 2023, with completion expected by June 2024.

• Strategy includes higher asset utilization, operational gas assets, power trading, technology-led adjacent businesses, hydro and clean-energy solutions; liquidity plans include asset monetization, claims recovery and refinancing.

• Management expects GWEL to generate future profits and recover receivables through utilization, merchant sales, long-term PPAs and plans for a replacement PPA.