The Hindu Business Line : GMR Infra net dips 41% despite higher income

Bangalore, July 30 Even as its total income grew 76.88 per cent to Rs 994.77 crore during the first quarter of the current fiscal, GMR Infrastructure Ltd’s (GIL) net profit for the period saw a steep decline of 41.44 per cent to Rs 40.69 crore as it suffered a notional foreign exchanger erosion of Rs 45.59 crore.

The company’s net profit during the first quarter of FY 2008 was Rs 69.49 crore while the gross revenue for the same period during last year was Rs 562.39 crore. GIL’s consolidated financials suffered on account of fluctuations in foreign currency project loans taken by its subsidiaries — Vemagiri Power Generation Ltd (VPGL) and GMR Hyderabad International Airport Ltd (GHIAL).

The two units, however, have adequate dollar revenues to provide natural hedge for the currency fluctuations that may arise with respect to interest and principal payments or repayments.

“But for these non-cash accounting losses the consolidated PAT of the company would have been higher at Rs 86.28 crore compared with the PAT of Rs 69.49 crore of the corresponding quarter of the previous financial year, said Mr G.M. Rao, Group Chairman.

He said apart from the non-cash forex loss, the net profit also suffered erosion due to non-realisation of a significant revenue stream of User Development Fee (UDF) at the Hyderabad International Airport, which alone led to an operating loss of Rs 25.55 crore. UDF of Rs1000 ($25) for every international passenger has been levied from April. Proposal to charge UDF for domestic passengers is pending with the Ministry of Civil Aviation (MoCA) and the approval is expected soon, Mr Rao said.

GMR Infrastructure Ltd (GIL) has four principal business verticals – Airports, Energy, Highways and Urban Infrastructure. These are administered through special purpose vehicles.

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