GMR Infra Q1 loss at Rs 67 cr

GMR Infrastructure today reported a consolidated net loss of Rs 66.69 crore for the quarter ended June 30, 2011, mainly on account of lower revenues from the Delhi Airport, high interest cost and increased tax outgo.

The company had reported a net profit of Rs 28.44 crore during the corresponding period of the last fiscal.

Net sales of the company during the quarter under review increased by 51.34% at Rs 1,863.57 crore, GMR Infra said in a filing to the Bombay Stock Exchange.

In a separate statement, the company said it incurred a loss of Rs 192 crore on Delhi Airport, which is operated by one of its subsidiaries, as the costs have gone up significantly, while the airport tariff has yet not been revised.

It added that the tariff revision in Delhi Airport is under active consideration with Airport Economic Regulatory Authority (AERA).

"It may be noted that increased cost of operations of Delhi International Airport Ltd (DIAL) after commissioning of Terminal-3 are being accounted for, without commensurate revision in the tariffs.

"Profit after tax (PAT) loss of DIAL has adversely impacted the overall consolidated results, resulting in the aforesaid PAT loss of Rs 67 crore for the quarter, after minority share," the statement said.

During the quarter, the interests payment of the company also increased by over 38% to Rs 372.42 crore, while the tax outgo was Rs 65 crore.

"The 38% rise in interest cost and 67% increase in depreciation are also mostly due the capitalisation of Terminal 3 at Delhi Airport. Tax liability of Rs 65 crore relates to profit-making subsidiaries," the statement added.

However, the traffic at the Delhi Airport increased by 23% during the quarter, it further said, adding that all the airports operated by company witnessed significant traffic growth in the April-June quarter.

Commenting on the results, GMR Group Chairman G M Rao said, "The first quarter of the year started on a strong note. Our airport assets experienced robust traffic growth and our energy assets turned out healthy plant load factor."

He added that the company infused $131 million (over Rs 591 crore) to consolidate equity base of its Airports Holiding Company, thereby making a total private equity investment of $331 million (over Rs 1,495 crore) during the quarter.

The company had a total debt of close to Rs 17,000 crore as on June 30, 2011, GMR Infra's Group CFO A Subba Rao said.