Airport Authority of India's profit declines marginally in FY13

AAI cites higher op expenses, investments made in infra, non-revision of airport tariffs and loss of business from closure of KFA for 2% drop in PBT

State-run Airports Authority of India has reported a marginal decrease of around two per cent in profit before tax (PBT) at Rs 1,337 crore in the financial year ended March 31, 2013.

AAI attributed the decrease in profit to higher operating expenses due to increase in security costs, significant investments made in development of infrastructure, non-revision of tariffs at airports and loss of business from closure of Kingfisher Airlines.

“Despite increase in gross revenue during 2012-13 by Rs 1,038 crore, profit before tax has reduced to Rs 1,337 crore primarily due to increase in operating expenses...Substantial investment in creation of infrastructure has taken place during the previous years. However, the airport tariff has not been revised since 2003 barring Kolkata and Chennai Airport which was revised w e f March 2013. The closure of M/s Kingfisher Airlines has also impacted the revenue of AAI”, the authority said in a statement.

For the fiscal year FY13, revenues grew by 17.7 per cent to Rs 6,917 crore as compared to Rs 5,879 crore registered in the previous fiscal.

AAI invested Rs 1,800 crore in infrastructure development in 2012-13 as against RS 2,095 crore in FY12.

The authority paid Rs 147 crore in dividend to the government.