GMR Infra Q4 net loss widens to Rs 953.50 crore

GMR Infrastructure, a diversified group with interests in the energy and airport sectors, saw its net loss on consolidated basis widen to Rs 953.5 crore on higher expenses during the fourth quarter ended March 31, 2015-16.

The company had clocked net loss after tax, minority interest and share of loss of associates at Rs 891.90 crore in the corresponding quarter of the 2014-15 fiscal.

Its total income from operations rose 28.27% to Rs 3,736.68 crore, from Rs 2,912.91 crore in the year-ago period, GMR said in a regulatory filing to BSE.

For the entire 2015-16, the company's net loss stood at Rs 2,161 crore, as against Rs 2,733.29 crore in the previous fiscal. Its total income from operations rose to Rs 13,357.66 crore last fiscal, from Rs 11,087.68 crore.

 

The company said in a statement that there is a significant improvement in earnings before interest, taxes, depreciation and amortisation (Ebitda), which saw an increase of 67% to Rs 4,264 crore last fiscal, from Rs 2,555 crore in 2014-15.

GMR's energy segment turned the corner with over 4 times improvement in Ebitda with "significant reduction in losses by Rs 960 crore despite the additional losses of Rs 688 crore on account of commissioning of Chhattisgarh (Rs 454 crore) and Rajahmundry (Rs 234 crore) power projects".

GMR Infrastructure said the induction of Tenaga as a strategic partner with an investment of Rs 2,000 crore provides GMR Energy a stable platform to strengthen the balance sheet and further improve efficiencies.

"Leverage ratios show remarkable improvement, as net debt to Ebitda ratio improves to 9.4x in FY16 from 15.5x in FY 15. Interest Coverage ratio improves to 1.05x in FY16 from 0.72x in FY15," it said.

The company said its Ebitda in the airport sector has increased by 40% to Rs 2,387 crore in 2015-16, from Rs 1,706 crore in the previous fiscal, and that the vertical has witnessed strong traffic growth in all the airports.

"Ebitda in Delhi airport improved by 23% for FY16 to Rs 1,729 crore from Rs 1,396 crore in FY15. Ebitda in Hyderabad airport doubled to Rs 367 crore from Rs 184 crore due to restoration of UDF from the month of November, 2015. Operations of Cebu Airport and Delhi Duty free has further buoyed airports Ebitda," the company said.

It said that interest for last fiscal increased by Rs 485 crore over 2014-15 to Rs 4,058 crore, primarily on account of interest charge of Rs 236 crore on operationalisation of Chhattisgarh plant and Rs 177 crore on operationalisation of Rajahmundry power plants.

It said that there has been a significant reduction in losses due to resolution of regulatory bottlenecks in power sector, better operating margins from power plants and robust traffic growth in airports have contributed to reduction in losses by Rs 960 crore (by 32%) during the year.

The company raised $300 million (about Rs 2,000 crore) through 60 years FCCB from Kuwait Investment Authority.

The company said it inducted strategic partner in GMR Energy and signed an agreement with Tenaga Nasional Berhad, Malaysia, for investment of $300 million (Rs 2,000 crore) in GMR Energy Limited (GEL) for 30% equity stake in GEL.

It also adopted strategic debt restructuring scheme for GMR Rajahmundry Energy Limited, a subsidiary of GMR Infrastructure Limited by Lenders.

Under the scheme, of the total outstanding debt (including overdue interest) of Rs 3,780 crore, debt to the extent of Rs 1,414 crore has got converted into equity, by which the consortium lenders would have 55% shareholding and balance 45% would be held by GMR.

The company said balance debt has been structured for a repayment period of 20.5 years comprising moratorium of 1.75 years and interest rate of 10.75%.

About divestment of road project it said it divested stake in GMR OSE Hungund Hospet Highways Pvt Ltd, which will cut Rs 1,078 crore of debt at Group level and create liquidity of Rs 85 crore.

"Divestment will be done in 2 tranches. First tranche of 14.99% has been completed, second tranche is to be completed post NHAI (National Highways Authority of India) and lenders approval," it said.

About Maldives Airport, it said arbitration tribunal is looking into the claim of GMR and has ruled in its favour on Axis Bank Debt in its award dated February 23, 2016.

"Tribunal has ruled that damages payable by Government of Maldives and Maldives Airport Company Limited to GMIAL (GMR Male International Airport Ltd) will also include all the sums owed by GMIAL to the project lenders Axis Bank Singapore Pte Ltd under the Facility Agreement," the statement said.

It said that the company recorded robust growth in airports and Delhi International Airport Ltd (DIAL) recorded a growth of 18% with 48.5 million passengers for FY16 while GMR Hyderabad International Airport Limited (GHIAL) recorded a growth of 19% with 12.5 million passengers and Cebu airport registered 20% traffic growth over 12 months.

GMR Group is a global conglomerate with interests in airport, energy, transportation and urban infrastructure. The group has fifteen power generation projects, of which ten are operational and five are under development; nine operating road assets and a double rail track line between Mughalsarai- New Bhaupur (Kanpur) of Eastern Dedicated Freight Corridor under development.

GMR had developed and operates Indira Gandhi International Airport in New Delhi and greenfield Rajiv Gandhi international airport at Hyderabad.

Shares of GMR Infrastructure were trading at Rs 11.11 a piece, down 3.39%, on the BSE.