|Hot Pursuit||Wednesday, February 08, 2012 10:02 Hrs IST|
GMR Infrastructure drops as net loss widens in Q3
The company announced the results after trading hours on Tuesday, 7 February 2012.
Meanwhile, the BSE Sensex was up 28.84 points, or 0.16% to 17,651.29.
On BSE, 3.97 lakh shares were traded in the counter as against average daily volume of 8.18 lakh shares in the past one quarter.
The stock hit a high of Rs 29.45 and a low of Rs 27.60 so far during the day. The stock had hit a record low of Rs 17.70 on 13 December 2011. The stock had hit a 52-week high of Rs 44.65 on 8 April 2011.
The stock had outperformed the market over the past one month till 7 February 2012, surging 27.75% compared with the Sensex's 11.19% return. The scrip had also outperformed the market in past one quarter, rising 9.85% as against 0.34% gain in the Sensex.
The large-cap infrastructure firm has equity capital of Rs 389.24 crore. Face value per share is Re 1.
On a consolidated basis, GMR Infrastructure's total income rose 49.17% to Rs 2094.45 crore in Q3 December 2011 over Q3 December 2010.
GMR Infrastructure said revenue surged in Q3 December 2011 despite lower PLF in energy sector due to lower gas availability for both the operating gas projects and major maintenance shutdown of Vemagiri Power. Energy sector also suffered loss of revenue due to floods in its South Africa coal mine, the company said in a statement.
The loss of Rs 229 crore incurred by Delhi Airport for the quarter (Q3 December 2011), pending tariff revision, coupled with the exceptional items and an interest charge of Rs 17 crore on account of loan borrowed for Sinar Mas acquisition, corresponding revenues of which will be consolidated from next quarter, resulted in the increased consolidated loss at Rs 108 crore for the quarter. With the tariff revision process for Delhi Airport having commenced consequent to the issue of Consultation Paper by AERA, the adverse impact of DIAL's results on the profitability of the company would soon be mitigated, GMR Infrastructure said in a statement.
The operating toll road projects recorded a revenue growth of 8% in Q3 December 2011. The highways segment is nearing the breakeven profit after tax (PAT) position, despite the crippling losses in Ambala Chandigarh project due to massive traffic diversion, the company said. The company is legally contesting the development of an alternative road, resulting in the said diversion, GMR Infrastructure said in a statement.
Commenting on the Q3 results, Mr G M Rao, Chairman, GMR Group said, "We are immensely happy that the tariff revision process for DIAL is coming to a closure, with AERA having issued the Consultation Paper. The implementation of the revised tariff, expected soon, will be an extremely significant development for DIAL and for the company as it would shift the company towards stronger cash flows and profitability".
"With the Union Government meeting various stakeholders in the power sector recently, we are confident that several bottlenecks the sector is reeling under currently will soon be removed through time bound action plan being coordinated through a newly formed Committee of Secretaries", Mr Rao said.
Mr Rao further said, "The imminent tariff revision for DIAL together the government's initiatives for resolution of the power sector concerns would make our journey heartening in terms of cash flows and profitability. We are also happy to report the closure of 30% equity stake sale in our 800 MW Singapore Power Project to Petronas International Corporation, marking the beginning of a remarkable partnership. Our baby steps in renewable energy space got bigger with the commissioning of a 25 MW solar power plant in Gujarat, where we earlier commissioned a 2.1 MW wind power plant. Our preparations are well under way to take over the operations of the mega project 'Kishangarh-Udaipur-Ahmedabad expressway' from May 2012, which will give significant cash flow from day one".
"We are watchful of the uncertain global economic environment and the ups and downs of the local economy. We are focusing on making our internal operations reach the next level of efficiency, through our Business Excellence framework, aligned to Malcolm Baldridge Quality model. Our focus is on cash and we are putting high emphasis on sweating our assets. This is already yielding good results", Mr Rao said.
GMR Infrastructure is a Bangalore headquartered global infrastructure major with interests in airports, energy, highways and urban infrastructure sectors. It has successfully employed the public-private partnership model to build a portfolio of high quality assets. The company has 16 power generation assets of which 5 are operational and 11 are under various stages of implementation and 10 road assets, of which 6 are operational and 4 are under construction. In the airports sector, it has developed and commissioned the Greenfield International Airport at Hyderabad. The company, besides operating the existing Delhi International Airport (DIAL), has also built a brand new integrated terminal T3 which was commissioned in time for the Commonwealth Games in October 2010.