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Focussing on cash conservation, GMR Infrastructure Limited has decided to reschedule completion of Delhi and Hyderabad airport expansion projects and that of Goa airport by nine months.
The diversified infrastructure company stated while the original plan for the Delhi project was September 2022, it will now be pushed to June 2023, though approval has been taken up to September 2023. The Hyderabad airport (originally planned for March 2022) will now be completed before December 2022. The date of commissioning for Goa airport has been revised from May 2022 to August 2022.
The company has laid special focus on reducing operating costs.
The GMR management believes that Covid-19 may impact the businesses in the short term, but it does not anticipate medium-to-long term risk to the business prospects.
Group restructuring
In an update on the strategic group restructuring of business, the company stated: “This restructuring is a step in right direction to unlock value of GIL through separate listing of both the airport business and non-airport business and simplifying the corporate holding structure. The company expects feedback from the stock exchanges by end of December, post which the company shall file the requisite petition with National Company Law Tribunal.”
The company had announced its move that involves vertical split demerger of the non-airport business of energy, epc, urban infrastructure, etc, of GIL into GMR Power and Urban Infra Limited as a going concern, alongwith the amalgamation of GMR Power Infra Limited with GIL, preceding the demerger.
To reduce the corporate debt, GMR Infra signed agreements for the sale of equity-owned GMR SEZ and Port Holding Limited of its entire 51 per cent stake in Kakinada SEZ Limited for ₹2,610 crore to Aurobindo Realty and Infrastructure Private Limited.
Q2 loss
The company has posted a ₹749 crore loss for the second quarter ended September 30, 2020 as against a loss of Rs. 457 crore on a consolidated basis.
The second-quarter income of was down at ₹1,448 crore as against ₹2,164 crore in the year-ago period.
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