GMR Infrastructure, a Bangalore based infrastructure company with interests in energy, airports and highways, posted a 26 per cent rise in its net profit to Rs 28.4 crore in the first quarter (April-June) this fiscal. However, revenues of the company rose marginally 5 per cent to Rs 123.3 crore during this period. Group chief financial officer A Subba Rao discussed the company’s first quarterly results with its future business plans with Debasis Mohapatra. Excerpts:
Total revenues of GMR Infra rose marginally by 5 per cent to Rs 123.3 crore during this quarter. Any specific reason for this low rise?
Revenue growth of the company during the last quarter was subdued as our 220 Mw barge mounted power plant was not operational affecting net operating revenue. However, the barge unit has been shifted to Kakinada and is expected to reach full capacity by August.
How much of a revenue upside is expected as the barge unit becomes operational?
This is expected to contribute a quarterly revenue of close to Rs 100 crore. However, the contribution to the bottomline will be subject to a buoyancy in the power sector and will vary from quarter-to-quarter.
What is the capacity addition plan of the company in the energy segment in the near future? Is there any fund raising plans for the energy vertical after $300 million infusion from IDFC and Temasek?
We have an operational capacity of 800 Mw by June-end and we hope to add another 2,800 Mw in the next two years. As far as the fund raising plans are concerned, we are not looking at any further capital infusion as of now as capital is adequate for the next two years.
Will you monetise the InterGen stake in the near future as the projected cash flow may fall short of annual interest payment on the acquisition debt?
We will not be able to comment on the stake monetisation issue. As of now, there are no such plans.
You recently bagged the contract for the Male International Airport on a BOOT basis. Have you set a time frame for achieving the financial closure of the project?
The project cost of Male airport is $400 million and it is expected to achieve financial closure by September, 2010. The debt-equity ratio of the project will be 75:25, but will not able to disclose details.
What will be the overall debt book by end of this fiscal? Any roadmap for reducing the debt book in the near future?
The overall debt book will remain at the same levels or may see a rise depending on the fund requirements of future projects. However, it may not see any downsizing as many projects are in the implementation phase and require capital infusion.
