GMR Infra net loss doubles to Rs 217 cr

GMR Infrastructure, the Bangalore-based publicly-held infrastructure developer, doubled its net losses to Rs 217 crore for the third quarter y-o-y, owing to higher interest burden. Consolidated revenue rose marginally seven per cent to Rs 2,378 crore.

The company, which during the past quarter was hit by two main factors: having had to give up on the $500-million Male International Airport and the Rs 7,000-crore national highway project in Gujarat, has a silver lining in the fact that its flagship project, Delhi International Airport, has made a profit of close to Rs 9 crore on revenues due to the a hike in in the aeronautical fee.

GMR Infra, which has a consolidated debt of Rs 35,000 crore, under a gearing of close to three times, had to fork out a total of Rs 525 crore as interest costs, which was up 24 per cent. As a result of this spike, the company’s net loss widened despite an 30 per cent improvement in the operating profit at Rs 359 crore.

All business divisions - airports, highways and urban infrastructure, except the power segment posted a profit. Loss in power segment widened by around four times to Rs 57.5 crore as the company was saddled with idle assets and also couple of generating stations working at 40 per cent due to non-availability of liquid fuel.

GMR, which has started the process of arbitration in Singapore agains the Male Government for forcing them out of the airport contract, said that they continue to hold the assets worth around Rs 1527 crore at their carrying values, pending the outcome of the arbitration. However, the statutory auditors have said that considering the uncertainty in view of the dispute and final outcome of the matter,  they are not able to comment on the carrying value of the assets.