GMR Infrastructure rose 1.85% to Rs 13.20 at 11:07 IST on BSE after the Philippines apex court upheld the decision to award Cebu Airport modernization project to the consortium of the company.
The announcement was made during trading hours today, 2 February 2016.Meanwhile, the BSE Sensex was down 15.48 points, or 0.06%, to 24,809.35.
On BSE, so far 62.02 lakh shares were traded in the counter, compared with an average volume of 31.24 lakh shares in the past one quarter. The stock hit a high of Rs 13.50 and a low of Rs 12.80 so far during the day. The stock hit a 52-week high of Rs 20.27 on 28 February 2015. The stock hit a record low of Rs 9.58 on 4 September 2015. The stock had underperformed the market over the past one month till 1 February 2016, sliding 21.45% compared with 5.11% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 0.77% as against Sensex's 6.87% fall.
The mid-cap company has an equity capital of Rs 603.59 crore. Face value per share is Re 1.
In a landmark judgment, the Supreme Court (SC) of Philippines has upheld the decision of the Department of Transportation and Communications (DoTC) to award the Mactan-Cebu International Airport project to the GMR Infrastructure (GMR) and Megawide Construction Corporation (MCC) consortium, GMR Infrastructure said in a statement.
Citing lack of merit, the decision endorsed by Chief Justice of Philippines, has denied the April 2014 petition by Senator to stop the awarding of the contract. It also denied the separate petition by the Business for Progress Movement for tack of legal and factual bases, the company said.
The Philippines apex Court's decision, which was announced by the Supreme Court Public Information Office, clears any overhang that existed on GMR led consortium and paves the way for expeditious implementation of the modemisation and expansion project for Cebu airport, it added.
Commenting on the development, GMR Infrastructure spokesperson said that the Supreme Court judgment clears any confusion or misconception about the process of airport modernization. This decision reinforces the company's position as a credible & financially strong airport operator. The decision will also boost the confidence of foreign investors in the public-private-partnership (PPP) program of the government of Philippines and comes at an opportune time when the 5 regional airports are being bid out, in which GMR is also participating.
GMR Infra led consortium won the contract to expand and modernize Mactan-Cebu airport on build-operate-transfer (BOT) basis for 25 years. The airport concession operates on a clear dual till with aero tariffs fixed under the concession and the airport entity having no cross subsidy from other revenues. Financially, the airport has reported a healthy EBITDA of 66% for the calendar year 2015 and figured in the top airports ranking for the first time in its history.
GMR Megawide Cebu Airport Corporation (GMCAC) is a Filipino company formed from the consortium comprising of GMR group of India and Megawide Construction Corp. of the Philippines under the Public Private Partnership (PPP) with the Department of Transportation and Communication (DOTC). GMCAC won the 25-year concession to rehabilitate and manage terminal operations at the Mactan Cebu International Airport (MCIA), including the construction of a second, bigger terminal, T2. The company took over management of the MCIA passenger terminal and related areas on 1 November 2014.
GMR Infrastructure will announce Q3 results on 10 February 2016. The company reported consolidated net loss of Rs 398.67 crore in Q2 September 2015, lower than net loss of Rs 609.86 crore in Q2 September 2014. Consolidated total net sales rose 16.5% to Rs 3070.75 crore in Q2 September 2015 over Q2 September 2014.
GMR Group Is a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation and Urban Infrastructure.
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