GMR Infra pares Q4 loss to ₹1,127 crore

Our Bureau Hyderabad | Updated on July 31, 2020

Total loss for FY20 also down to ₹2,198.49 crore

GMR Infrastructure posted a consolidated net loss of ₹1,126.82 crore for the quarter ended March 31, 2020 as against a loss of ₹2,341.24 crore for the corresponding quarter of previous fiscal.

The diversified infrastructure company posted a consolidated income of ₹2,554.21 crore for the fourth quarter as against ₹2,293 crore in Q4FY19.

For the full year ended March 2020, GMR posted a total revenue of ₹8,556 crore and a loss of ₹2,198.49 crore as against revenue of ₹7,576 crore and loss of ₹3,466.41 crore in the previous fiscal.

Revenues from the airports segment was up at ₹1,582.49 crore as against ₹1,389.58 crore in the fourth quarter, while the power vertical registered ₹310.28 crore against ₹220.41 crore.

For the full year, revenues from airports business was up at ₹6,190.87 crore as against ₹5,371.63 crore in the previous year.

While the airport vertical has fared well, the company continues to incur losses in the energy and highway sectors.

The management is working towards monetisation and stake sales in certain assets, while seeking to raise finances from various sources including financial institutions and strategic investors, refinancing of existing debt and other strategic initiatives to address the repayment of borrowings and debt, the company stated.

Groupe ADP partnership

GMR informed it has completed the previously announced strategic partnership with Groupe ADP even under an unprecedented times of the Covid‐19 pandemic. It received the first tranche of ₹5,248 crore from Groupe ADP on February 26, 2020 for an effective transfer of ownership of 24.99 per cent in GMR Airports Limited (GAL).

The second tranche of the investment for 24.01 per cent of GAL was structured in two parts totalling ₹4,565 crore, including a ₹1,000-crore primary equity infusion in GAL received on July 7, 2020 and earnouts of ₹1,060 crore, subject to achievements of certain performance targets by GAL upto 2024. Total earnouts is now pegged at upto ₹5,535 crore.

Post the second tranche completion, Groupe ADP owns 49 per cent in GMR Airports Limited. As part of the terms of transaction, GMR retains management control over the airports business. The proceeds from this strategic partnership have been primarily used in servicing the debt and purchase of private equity investors in GAL. The infusion of cash will help further deleverage GMR Group and result in improved cash flows and profitability over the medium term, the company informed the BSE.

Published on July 31, 2020

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