GMR Infrastructure Ltd’s losses have widened to Rs 94 crore (loss of Rs 67 crore) for first quarter ended June 30 compared with the corresponding quarter of last year.
The revenues grew 23 per cent to Rs 2,562.40 crore.
The performance of its subsidiary Delhi International Airport Pvt Ltd (DIAL) and one-time tax asset reversal at GVPGL (Vemagiri power plant) affected the bottom-line.
G.M. Rao, Group Chairman, said, “While the growth in revenues of airport and highways sectors is in line with our plans, the non-availability of gas for the power plants has impacted the topline for energy sector.”
According to Amarthaluru Subbarao, CFO, GMR group, “As the group is not going to make any capital expenditure this year, we have roped in consulting major McKinsey to look into our cost structure and help us re-engineer our processes to save money.”
The board has approved raising funds up to Rs 2,500 crore through various instruments, including equity shares / GDRs / ADRs / FCCBs and / or other securities. “This is an enabling resolution to retire debt at GMR Infra taken a few years ago to fund airport, energy and road projects,” said Subbarao.
Airport, energy businesses
The firm's airport business suffered a Rs 90-crore loss in Q1, while revenues grew 21 per cent to Rs 1,284 crore. Siddhartha Kapur, CFO, GMR Airports, said, “The profitability of DIAL is expected to further improve in the next quarters on account of applicability of the revised tariff for the full period.”
The energy business suffered a Rs 27 crore loss in Q1. Revenues grew by seven per cent to Rs 746 crore. Raaj Kumar, CEO, GMR Energy, said, the loss in the energy segment was due to lower gas availability in Kakinada and Vemagiri plants.