GMR Infra PAT (after minority interest and after notional forex losses) declined by 6.05% on Account of foreign exchange loss of Rs. 58.94 crore

Gross revenues up by 91.47% to Rs 958.23cr

Highlights for Q2 FY 2008 – 09 Vs Q2 FY 2007 - 08:

·         Gross Revenues up by 91.47% from Rs. 500.45 crore to Rs. 958.23 crore

·         Net Revenues up by 114.21% from Rs. 395.31 crore to Rs. 846.81 crore

·         EBITDA up by 58.72% from Rs. 155.71 crore to Rs. 247.14 crore

·        PAT (before  notional forex losses) increased by 36.80% from Rs.67.07 crore to Rs.91.75 crore

·         PAT (after notional forex losses) declined by 54.33% from Rs.71.85 to Rs.32.81 crore

·         PAT (after minority interest, but before notional forex losses) increased by 135.53% from Rs. 44.80 crore to Rs. 105.52 crore

·         PAT (after minority interest and after notional forex losses) declined by 6.05% from Rs. 49.58 crore to Rs. 46.58 crore

 

Highlights for H1 FY 2008 – 09 Vs H1 FY 2007 - 08:

·         Gross Revenues up by 83.75% from Rs. 1,062.84 crore to Rs. 1,953.00 crore

·         Net Revenues up by 98.68% from Rs. 871.90 crore to Rs. 1,732.28 crore

·         EBITDA up by 65.12% from Rs. 294.29 crore to Rs. 485.92 crore

·         PAT (before  notional forex losses) increased by 43.63% from 124.01 crore to 178.12 crore

·         PAT (after  notional forex losses) declined by 47.99% from Rs. 141.34 crore to Rs. 73.50 crore

·         PAT (after minority interest, but before notional forex losses) increased by 146.45% from Rs. 78.65 crore to Rs. 193.10 crore

·         PAT (after minority interest and after notional forex losses) declined by 7.81% from Rs. 95.98 crore to Rs. 88.48 crore

 

Profit after tax (PAT) for the quarter and the half year is lower by 6.05% and 7.81% respectively as compared with the profit of corresponding periods of the previous year mainly due to notional foreign exchange loss of Rs. 58.94 crore for the quarter and Rs.104.62 crore for the half year, accounted mostly by two of the Company’s subsidiaries on the foreign currency project loans borrowed by them. But for these non-cash accounting losses, recognised pursuant to the Accounting Standard 11, the consolidated PAT of the Company would have been higher by 36.70% at Rs. 91.75 crore for the quarter and higher by 43.63% at Rs. 178.12 crore for the half year as compared to the PAT of Rs. 67.07 crore for the previous quarter and Rs. 124.01 crore for the previous half year. These two subsidiaries namely, Vemagiri Power Generation Limited (VPGL) and GMR Hyderabad International Airport Limited (GHIAL), have adequate dollar revenues to provide natural hedge for the currency fluctuations that may arise with respect to interest and principal payments/repayments.

 

GMR Infrastructure Ltd (GIL) has four principal business verticals namely, Airports, Energy Highways and Urban Infrastructure. These are administered through Special Purpose Vehicles (SPVs) for the operations and management of various infrastructure projects.

 

The consolidated results given in this press release present the full revenues, expenses and the results of the business operations of the Company and its subsidiaries.

 

The Statutory Auditors of the Company have carried out a Limited Review of the consolidated financial results of the company for the quarter ended September 30, 2008.

 

Commenting on the highlights for the quarter, Mr. G.M. Rao, Group Chairman, said: “ Despite the unprecedented global financial crises, it is extremely gratifying to note that we could achieve the financial closure for the acquitison of 50% equity stake in Intergen NV, a global Energy Major with operational capacities of 8086 MW and developmental capacities of more than 4600 MW. We are also delighted that we could renegotiate the acquisition price for Intergen NV and thus reduced the acqusition costs by USD 162 million.  We are also glad to report thatHyderabad Airport has started collecting User Development Fee (UDF) from domestic passengers from last week of August ’08 after getting the necessary approvals from Ministry of Civil Aviation. With this, Hyderabad Airport has started realising all its revenue streams. We have also forayed into hospitality sector during the quarter, with the soft launch of 308 room hotel at Hyderabad Airport. Though GIL and its subsidiaries are comforatably placed with enough liquid resources, considering the serious challenges likely to be posed by the unfolding global financial crisis and recession on unprecedented scale, we are taking various appropriate measures to emerge stronger, such as directing our investments on projects with immediate cash flow potential, improving effiencies, ‘value for money’ initiatives,  monetisation of non-core investments etc.”

 

A brief summary of the results for the quarter and other material events / developments are as follows. (Comparisons made with Q2 FY 2007 -08 & H1 FY 2007-08)

 

·   The revenues recorded a significant increase by about 92% for the quarter and by 84% for the Half year due to the induction of revenue streams from GHIAL and SGIA and also higher Plant Load Factor (PLF) from the Energy Sector.

§   The PAT for the quarter and for the half year is lower as compared with the PAT for the corresponding quarter of the previous year due to non-cash forex loss as explained earlier. Further, the non realisation of UDF on domestic passengers till 22^nd August 2008  resulted in GHIAL incurreing an operating loss of Rs. 35.89 crore for the quarter and 61.44 crore for the half year, excluding the loss on account of forex fluctuations to the tune of Rs. 48.58 crore for the quarter and 85.11 crores for the half year.

Business-wise Performance highlights - Q1 08-09

Airports

Delhi International Airport Ltd. (DIAL)

·         New Ruway was completed and  inaugurated in the quarter,  6 months ahead of the schedule as per OMDA requirement.

·         The upgradation of the present international terminal (T2) was completed and was inaugurated in July 2008.

·         Due to global recession and high fuel costs, passenger traffic for the quarter has shown a marginal decline of 0.3% as compared with the corresponding quarter of the previous year.

·         Air Traffic Movements (ATMs) have recorded a growth rate of 6.4% from 108,710 in Q-2 of 07-08 to 115,668 in Q-2 of 08-09.

·         The upgradation work of the domestic terminal (T1) and the construction of the new integrated terminal (T3) is pacing as per the schedule.

·         RFP is issued for development of property at Delhi International Airport and the bid finalisation process will be completed by third week of November ’08.

 

GMR Hyderabad International Airport Ltd. (GHIAL)

·         Special facilities were created for Haj operations for 13,800 pilgrims/46 chartered flights

·         Air Arabia is commencing flight operations  from end of October ‘08

·         UDF of Rs.375 is being levied on the domestic passengers from August 23, 2008.

·         Domestic Passenger traffic has declined by 7.7% as compared with H1 of 07-08 while  International Passneger traffic has shown a growth of  8.4% for the same period.

·         McDonalds opened its second outlet at Level C of Commercial Plaza

·         GMR maintenance, Repair & Overhaul (MRO) venture is on track –  72 engineers have left for Malaysia for undertaking a one year on-the-job training with Malaysian Airlines.

·         The Special Lounge with nap & shower facility, a new concept in Indian airports, has opened at Hyderabad International Airport. It comprises 28 spa rooms with shower and other facilities. The new lounge will be helpful for business executives and women passengers who fly into Hyderabad in the morning for their official meetings and return by the evening flight. 

Sabiha Gokcen International Airport (SGIA), Turkey 

·         Construction of the new airport terminal is going on at a rapid pace and project is on track for commercial operation of new airport terminal by October 2009.

·         New Cargo Terminal was opened for operations during the current quarter.

·         New temporary arrival terminal was commissioned for operations to ease congestion in the existing terminal building.

Energy

·         The Chennai plant is running efficiently with a 84% Plant Load Factor

·         The EPC contract for the 1050 MW Thermal Power project at Kamalanga, Orissa, has been awarded to SEPCO. The project is set to achieve the financial closure before end of November, 2008.

·         Execution of other projects is also progressing as per schedule

·         Following the expiry of the seven-year Power Purchase Agreement, the 220 MW GMR Energy Ltd (GEL) at Tanir Bavi near Mangalore in Karnataka ceased to operate. The company is finalising the arrangements to operate the plant as a merchant plant from its current location.

·         After operating for about two and half months between February and April 2008, Vemagiri Power Generation Limited (VPGL) awaits gas for resuming its operations. The operating losses, after adjusting for notional forex fluctuations, have stood at Rs.40.70 crore in the quarter for the half year 59.16 crore.

  

Highways

 

·         The company has been shortlisted for submission of price bids for (a) Ghaziabad-Aligrah (126km) (b) Eastren pheripheral Express way (135km) and (c) Tirupati-Chennai (111kms). Price bids for these projects will be submitted in November, 2008.

·         The Four new road assets comprising of one annuity and three toll based projects are under advanced stages of implementation. All these projects will be operational in the coming months before March 09. On completion of these four projects totaling 269 km, the Group will have a balanced portfolio of three toll based road assets totaling 166 km and three annuity based assets totalling 255 km