GMR Infrastructure, the Bangalore-based infrastructure developer, has reported a 36 per cent drop in its consolidated net profit at Rs 40.8 crore for the third quarter ended December 2008 compared to the corresponding quarter last year.
The company, which is into airports, power, highways and urban infrastructure, said that the drop in net profit was due to a combination of notional forex losses on a loan of $125 million, lower air traffic and higher interest costs on a total debt burden of Rs 10,500 crore. Operating costs were higher by 74.3 per cent to Rs 671 crore.
Its net sales for the quarter went up by 79.2 per cent to Rs 959.1 crore compared to the same quarter last year as GMR’s three power projects generating 800 MW fired up optimally, supplying to power hungry states of Karnataka, Tamil Nadu and Andhra Pradesh. Riding on this, the company’s operating profit surged 92 per cent to Rs 287.7 crore.
The revenue from airport business went up by almost three times, mainly due to non-aero revenues, to Rs 322 crore, while revenue from power business recorded 47.6 per cent jump at Rs 550.5 crore.
Said GM Rao, group chairman, GMR Infrastructure, “With the southward journey of the economy, the overall footfalls at both our airports are declining, thus posing a challenge. To confront this challenge, we are taking several business development measures such as bringing new airlines, connecting new destinations, creation of new cargo infrastructure etc. We are also working on several strategies to convert the present economic crisis into winning opportunities in the infrastructure space.”
GMR Infrastructure has sought the central government approval for increase in user development fee for domestic and international passengers, while also parallely appealing for increase in landing and parking charges.