The Hindu Business Line : GMR Infra Q4 net flat at Rs 41 cr on exceptional losses

Snapshot
For the full year ended March 31, 2008, net profit grew 8.6 per cent to Rs 262.65 crore (Rs 241.77 crore).
Work on Delhi International airport progressing at full swing.
The company plans to invest Rs 2,400 crore in the current fiscal in various road projects.

Our Bureau

Mumbai, May 21 GMR Infrastructure posted a marginal 4 per cent rise in net profit at Rs 41.2 crore for the fourth quarter ended March 31 2008 against Rs 39.5 crore in the same period last year.

According to the company, the profit was only marginally higher because of certain exceptional losses and expenditure.

GMR has four business verticals – airports, energy, roads and urban infrastructure.

The GMR Hyderabad International Airport Ltd, which commenced operations on March 23, has incurred a loss of Rs 57.81 crore, largely on one-time inception costs, said Mr Amarthaluru Subbarao, GMR’s Chief Financial Officer-corporate integration.

Also, Delhi International Airport made a provision of Rs 25 crore towards the estimated arrears that may be payable on account of implementation of Sixth Pay Commission to the employees of the Airports Authority of India, working for the airport. On its Vemagiri Power Generation Ltd, the company has suffered a loss of Rs 12.41 crore for the quarter.

“These are all non-recurring losses or expenditures,” said Mr Subbarao.

The total consolidated income for the quarter grew by 46 per cent to Rs 905 crore (Rs 619 crore). Of the net revenues for the quarter, power sector accounts for 70.32 per cent, airports 15.71 per cent, roads 3.94 per cent and others 10.03 per cent.

Full year

For the full year ended March 31, 2008, net profit grew 8.6 per cent to Rs 262.65 crore (Rs 241.77 crore). The total income for the same period rose by 38 per cent to Rs 2,364.53 crore (Rs 1,715 crore). Vemagiri Power Generation Ltd incurred a loss of Rs 109.13 crore for the full year. Of the net revenues for the financial year, power sector contributed 72.71 per cent, airports 15.21 per cent, roads 5.40 per cent and others 6.67 per cent.

However, net profit on a standalone for the said quarter grew over 200 per cent to Rs 37 crore (Rs 12 crore). Total income for the same period was also up 181 per cent to Rs 64 crore (Rs 22.7 crore)

On the progress of the Delhi International Airport, Mr Subbarao said the expansion and upgradation work is on full swing. “Runway will be operational in June, which is six months ahead of schedule,” he said. The new domestic terminal will open by the end of 2008 and the upgradation work of the international terminal will be complete by July 2008 as per schedule. The work on integrated terminal is 30 per cent complete and will open in March 2010, as planned, he added.

The infrastructure company is trying alternative approaches to develop and monetise the land at Delhi Airport in consultation with the government, and a solution is expected over the next two weeks, he said.

GMR plans to invest Rs 2,400 crore in the current fiscal in various road projects and expects to commission four important road projects -- two in Andhra Pradesh, one in Tamil Nadu and one in Ambala, by the end of the calendar year, Mr Subbarao said.

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