GMR Infrastructure net loss widens 1.5 times to Rs 610 crore

The woes of GMR Infrastructure - the Bengaluru-based publicly held infrastructure developer - continued during the July-September quarter of this year, as its net loss widened by 1.5 times to Rs 610 crore as compared to Rs 393 crore for the corresponding quarter last year.

The loss widened due to two primary reasons: Non-availability of gas on India's east coast to fuel its two almost idle power plants and the increased burden of debt under which the company is wilting under a leverage of 3.5 times at Rs 40,000 crore.

However, given the increased footfall of people at Delhi and Hyderabad airports that GMR manages gave some impetus to the revenues, which grew by around 11 per cent to Rs 2,682 crore. This increase was also aided by some support from its two fledglings coal-fired power plants which are in the stabilisation phase.

"The increase is powered by traffic growth in Delhi and Hyderabad airports and increased revenue in EMCO and Kamalanga, which are in the stabilization phase. On other hand, revenues from Turkey airport and Ulunderpet Expressways have not been accounted for during this quarter, due to divestment of these projects," GMR Infrastructure said in a statement.

Operating profit for the quarter has increased by 2 per cent from Rs 576 crore to Rs 590 crore and for the half year it has increased by 3 per cent from Rs 1,172 crore to Rs 1,203 crore.

The company to reduce its gearing is planning to go for a Rs 1,500 crore rights issue in the near future and is looking at to offload stakes or full projects in itself to address these.

During the past quarter, GMR strengthened is airports portfolio by gaining control over a airport project in Cebu in Philippines.