Increase in operating cost of the Delhi International Airport has resulted in Bangalore-based GMR Infrastructure Ltd posting a loss of Rs 67 crore in the first quarter of fiscal 2012 against a profit of Rs 28 crore last year.
The infrastructure major, however, earned a revenue of Rs 1,864 crore (Rs 1,231 crore), a 51 per cent increase over the previous year.
“The higher revenues were brought in primarily by the operations of Male International Airport (which was acquired by GMR in November 2010), higher traffic growth at the Turkey and Hyderabad airports, and several joint ventures of the Delhi airport,” Mr G.M. Rao, Group Chairman, GMR, said at a press conference.
The consolidated entity also saw an increase of 38 per cent in interest costs and a 67 per cent increase in depreciation after the capitalisation of Terminal 3 at the Delhi International Airport.
“While rising inflation and consequential higher interest costs are a cause of concern, this situation will not alter the long term viability of the infrastructure projects. However, as in the past, we will freeze the interest costs during their low ebbs by tying up long term finances at fixed interest rates, thus mitigating this interest rate risk,” Mr Rao said in a press release.
Scrips of GMR Infra were being quoted at Rs 30.75 on the Bombay Stock Exchange in the afternoon trade, up 2.16 per cent from its previous close.