Global infrastructure major GMR posted a loss of Rs 63 crore in the second quarter of fiscal 2012 because of rising interest and depreciation costs, and a Rs 227-crore loss from operations at the Delhi International Airport, caused by pending tariff revision.
“The company would be in an enabled position to absorb the increase in the interest and depreciation costs, once the tariff revision process for Delhi Airport is completed,” GMR said in a press statement.
The Delhi airport loss has “become the dominating causative factor for the current quarter consolidated loss,” GMR said. “The drop in the merchant tariffs and the reduced availability of gas for power generation also dented the profitability of the quarter,” it said.
The company saw a loss of Rs 63 crore, a 187 per cent fall from a profit of Rs 71 crore during the corresponding quarter last year. The company's interest costs rose 49 per cent to Rs 392 crore while depreciation costs went up 34 per cent to Rs 268 crore.
GMR Airports
The company's airports division, “despite a significant growth in the EBITDA, continues to post losses due to pending tariff revision for Delhi Airport,” the press statement said.
The loss the company faced went up 113 per cent to Rs 243 crore.
Airports business of the company consists of 2 Indian airports at Delhi and Hyderabad and 2 airports abroad, at Istanbul in Turkey and Male in Maldives.
The energy, highways and EPC segments, however, saw profits (before minority) of Rs 8 crore and Rs 1 crore and Rs 19 crore, respectively, in this quarter.
“We continue to move in the right direction, strengthening the business fundamentals and long term sustainability. The company has become the largest Indian highways developer by bagging the largest ever highway project, the six-laning of the 555.5-km long Kishangarh—Ahmedabad stretch, part of the proposed Delhi-Mumbai Industrial Corridor.”
“We recognize the emergence of new challenges in the power sector viz., gas availability, coal availability and fast deteriorating financial health of the power purchasing state utilities. We are taking requisite measures to mitigate and overcome this unfolding uncertainty,” Mr G M Rao, Group Chairman said.