Bangalore-based GMR Infrastructure, hit by lower footfalls at one of its airports, losses at its power and road projects, has posted a marginal 6.4 per cent increase in net profit to Rs 53.2 crore for the fourth quarter of 2008-09 as compared to the corresponding quarter of last fiscal.
The company, which builds and manages infrastructure assets including airports, power projects and highways, has said that its net revenue was up 50 per cent to Rs 1,327.7 crore backed by increased load factor at its power plants and commissioning of three highway projects.
GMR, which is upgrading New Delhi's airport at a total cost of close to Rs 9,000 crore, has incurred a loss of Rs 24 crore in revenue due to lower footfalls during the fourth quarter and had to pay out interest of Rs 40 crore for the debt it has raised to fund the upgrade. A senior finance official of the company said that there was no interest payout during the corresponding quarter of last fiscal.
The company, which has put up and managing the greenfield airport at Hyderabad has said that revenues from this airport has been quite satisfactory which has helped this vertical report an almost 100 per cent growth in topline during the quarter.
Detailing further on the marginal growth in net profit, A Subbarao, president and chief financial officer, GMR Group: "We suffered a loss of Rs 93 crore at our gas-fired 320 Mw Vemagiri Power project in Andhra and Rs 60 crore loss at our 220 Mw barge-mounted power project at Tannirbavi in Mangalore. Losses from road projects at Rs 15 crore also contributed to the lower profit margins in the quarter."
However, at an operating level, GMR has reported a massive rise of 88.6 per cent to Rs 286.2 crore during the fourth quarter compared to the year ago period. The cash profits during the quarter went up by 24.9 per cent to Rs 130.5 crore.
For the full year ended March 31, 2009, GMR Infrastructure reported a net profit of Rs 279.4 crore, a growth of 33.02 per cent compared to the previous year. Its net revenue rose by a whopping 75.1 per cent to Rs 4,476 crore compared to the previous year. Its operating profits were higher by 78.2 per cent to Rs 1,067 crore.
Commenting on the performance, G M Rao, chairman, GMR Group said: “Despite the recessionary trends in the economy and the effects of the global meltdown, the GMR Group has been able to demonstrate revenue growth, improved operational efficiency and timely funding for all its projects and acquisitions.”
