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Informist, Tuesday, Jan. 28, 2025

By Aman Aryan

MUMBAI – Despite higher depreciation and staff costs, the consolidated net profit of GMR Aiports Ltd. for the December quarter rose to the second highest in the last 10 years due to an exceptional gain of INR 4.09 billion during the quarter. This exceptional gain was on account of sale of stake in Cebu airport. The company posted a profit after incurring a net loss for the last seven consecutive quarters.

The airport operator's consolidated net profit for the December quarter was INR 2.67 billion against a net loss of INR 3.18 billion in the year-ago quarter. With 19% on-year growth in consolidated revenue for the quarter, the company's revenue has now grown for 13 quarters in a row. Unlike the latest quarter, the company made an exceptional loss of INR 304.3 million in the year-ago quarter.

GMR Airports finance costs for the December quarter fell for the first time in 13 quarters to INR 8.29 billion. The company's depreciation and amortisation expenses rose 22% on year to 4.79 billion and its staff costs rose 20% on year to INR 3.86 billion during the December quarter.

The company's earnings before interest, tax, depreciation, and amortisation for the quarter was INR 10.87 billion, up from INR 7.93 billion a year ago. Operating profit margin for the December quarter expanded 536 basis points to 40.96%.

Total passenger traffic of GMR Airports-owned airports rose 10% on year to 31 million in the quarter. During the December quarter, Delhi International Airport Ltd., a joint venture company of GMR Airports, recorded the highest ever quarterly passenger traffic of 20.3 million, up 8% on year. Domestic traffic increased by 8.2% on year and international traffic increased by 7.8% on year.

The Delhi airport's EBITDA rose 6% on year to INR 4.35 billion during the December quarter. GMR Airports said the Delhi airport became the first Indian airport to connect 150 total destinations. GMR Airports has 64% stake in the Delhi airport. During Apr-Dec, non-aeronautical revenue of the Delhi airport rose 12% on year to INR 24.2 billion, of which retail and cargo revenues rose 13% each, and food and beverages revenues rose 23% on year.

GMR Hyderabad International Airport Ltd., another joint venture of the company, recorded passenger traffic of 7.7 million in the December quarter, up 22.1% on year. Domestic passenger traffic at the airport rose 24% and international traffic rose 11.5% on year, GMR Airports said in a press release. Non-aeronautical revenue of the Hyderabad airport rose 11% on year to INR 4.6 billion during Apr-Dec, of which retail revenues, food and beverages, and advertisement revenues rose 15%, 41%, and 21%, respectively.

The joint venture recorded an EBITDA of INR 3.87 billion, up 35% on year, and a net profit of INR 610 million, more than double of INR 240 million in the year-ago quarter. GMR Hyderabad International declared an interim dividend of INR 7.5 per share, aggregating to INR 2.84 billion.

GMR Airports-operated another domestic airport in Goa recorded passenger traffic of 1.2 million, almost flat on year. The company has signed an agreement to develop two hotels on 4 acres of area in the city side development area of Goa airport, GMR Airports said. Indian airports operated by the company handled 28% of the total Indian passenger traffic in the nine months ended December, according to the investor presentation. International passengers comprised 24% of the total passengers handled by airports operated by the company in India during the period.

Development work at Bhogapuram Airport in Visakhapatnam has reached 55% and that at Greece airport has reached 43% as of Dec. 31, the company said. GMR Nagpur International Airport Ltd., a wholly owned subsidiary of GMR Airports, signed an agreement with MIHAN India Ltd. on Oct. 8 to upgrade, develop, and operate Nagpur's Dr. Babasaheb Ambedkar International Airport. The process to take over the airport is underway and is expected to be completed by the June quarter of 2025-26 (Apr-Mar), the company said in a release.

As of Dec. 31, the company had a net debt of INR 297 billion, up 17% on year and 3% sequentially. For the nine months ended December, the company reported a consolidated net loss of INR 1.55 billion, lower than the loss of INR 4.38 billion a year ago. For the same period, the company reported a consolidated revenue of INR 75.51 billion, up from INR 63.08 billion a year ago. The company's EBITDA for Apr-Dec was INR 30.65 billion, up from INR 24.78 billion a year ago.

On Tuesday, shares of the company closed at INR 71.06 on the National Stock Exchange, up 0.8%. The company declared its results post-market hours.  End

Edited by Ashish Shirke

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