Idle power asset pulls down GMR Infra's net 7.5%

GMR Infrastructure, which manages several power, road and a couple of airport projects, has witnessed a 7.5 per cent fall in its net profit to Rs 49.58 crore in Q2 2007-08 compared to the corresponding quarter of last fiscal.

The company had earlier guided the markets that it is sitting on an idle asset in the form of a completely set-up 388 Mw gas-powered project in Vemagiri in Andhra Pradesh and that it is not able to generate power due to the lack of gas supply. GMR had also added that it is hopeful of securing gas supply during Q2 of next fiscal.

In addition to this, the company which is revamping the Delhi International Airport, had to pay out Rs 105 crore as annual fee, an increase of Rs 35 crore over the second quarter of last fiscal.

Besides, the company had to pay a minority interest of Rs 22.27 crore this quarter when compared to Rs 16.98 crore the corresponding quarter of last fiscal, reducing the net profit margin. The net profit after tax and before minority interest stands at Rs 71.85 crore this quarter, a marginal increase of over Rs 70.60 crore recorded in Q2 2006-07.

The revenue for the quarter increased 28.4 per cent to Rs 406.9 crore when compared to the corresponding quarter last fiscal. The company gained Rs 10.41 crore as other income realised on investment of surplus cash and temporary deployment of IPO proceeds during the period.

The consolidated gross operating revenue for the quarter increased 30.65 per cent to Rs 500.45 crore. It includes the contribution from the Delhi International Airport operations (Rs 123 crore).

The revenue from the power sector was Rs 214.49 crore, a 10 per cent rise over Q2 2006-07. The revenue from road projects was marginally less at Rs 34.89 crore when compared to Rs 35.97 crore in the second quarter of last fiscal.

"The present results |reflect only a small aspect of the true operating potential of our assets. As more of our businesses become operational to their maximum capacity, we are confident of posting a substantial growth in performance," said GMR Group Chairman G M Rao.

The company's share price on the BSE dipped 4.4 per cent to close at Rs 159.70 on Thursday. GMR Infrastructure is the company building the greenfield Hyderabad International Airport.