GMR Infrastructure
Forex losses mars the good show
GMR Infrastructure reported 10% fall in consolidated net profit in spite of
86% spike in the net sales, for the quarter ended June'08. The fall in
profits was primarily triggered by forex losses and depreciation. The
operating profit margin contracted by 210 bps to 27.0%, which was result of
higher PLF in power sector and increase in manpower of DIAL (Delhi
International Airport). The operating profit reported growth of 72% at Rs
238.78 crore. The company reported forex loss of Rs 45.68 crore and
depreciation increased by 97% resulted into PBT to fall by 36%. Thanks to
minority interest that reported a profit of Rs 1.21 crore as against loss of
Rs 23.08 crore in the corresponding previous period. Finally, net profit
fell by 10% to Rs 41.90 crore.
Consolidated quarterly performance
The consolidated net sales of GMR infrastructure clocked at Rs 885.47 crore,
an increase of 86% over corresponding previous period. The strong growth in
sales powered by airport and power business, with a growth of 177% to Rs
276.93 crore (or 31% of total sales) and 53% to Rs 507.06 crore (or 57% of
total sales). The roads business remains flat at Rs 34.69 crore (or 4% of
total sales).
The operating profit margins declined by 210 bps to 27.0%. The fall in
margin due to rise in generation and operating expenses by 260 bps to 12.3%
of sales. General & administrative expenditure grew by 110 bps to 8.1% and
employee cost increased by 10 bps to 9.2%. The margins would have been
further down, but fall 160 bps in fuel cost to 43.5% restricted it. As
Vemagiri Power Generation (VPGL) and Sabiha Gokcen International airport
(SGIA) reported operating loss of Rs 27.52 crore and Rs 11.04 crore, the
operating profit registered a growth of 72% at Rs 238.78 crore over
corresponding previous period.
The airport business registered a loss of Rs 21.29 crore comparing to profit
of Rs 19.47 crore in the corresponding previous period. The power and roads
business also declined by 1% to Rs 69.88 crore (or 58% of total PBIT) and 1%
to Rs 17.92 crore (or 15% of total PBIT).
The other income grew by 5% to Rs 6.86 crore. The interest outgo (net) and
other finance charges (net) for the quarter rose by 84% to Rs 68.91 crore,
which consists, interest and other finance charges of Rs 78.33 crore and
interest income of Rs 9.42 crore. The depreciation increased by whopping 97%
to Rs 80.16 crore. Resultantly, PBT before forex gain/loss reported growth
of 44% to Rs 96.57 crore. The company incurred forex loss of Rs 45.68 crore
as compared to forex gain of Rs 12.62 crore in the corresponding previous
period. The majority of the forex loss incurred only from two subsidiaries,
Vemagiri Power Generation and GMR Hyderabad International airport accounts
for Rs 45.59 crore. Resultantly, PBT reported a fall of 36% at Rs 50.89
crore. As the effective tax rate moved up by 730 bps to 20.0%, PAT fell
further by 41% to Rs 40.69 crore. However, as minority interest accounted a
profit of Rs 1.21 crore as compared to loss of Rs 23.08 crore in the
corresponding previous period, the bottom line fell by 10% to Rs 41.90
crore.
Consolidated yearly performance
Net operational income for the fiscal was higher by 35% to Rs 2294.78 crore.
With OPM standing at 34.4% compared to 37.1% in FY '07 the operating profit
grew on the back of higher sales to Rs 790.46 crore, a rise of 26%. Other
income was higher by 194% to Rs 53.95 crore, the interest cost was higher by
17% to Rs 168.71 and depreciation was higher by 33% to Rs 178.51 crore.
Resultantly the PBT before forex gain/loss was higher by 35% to Rs 497.19
crore. The forex gain for the year Rs 15.80 crore compared to nil in the
corresponding previous year. EO expense was higher by 125% to Rs 191.96
crore thus limited the growth at PBT after EO to 13% to Rs 321.03 crore.
Taxation was higher by 41% to Rs 58.38 crore and thus the PAT was higher by
9% to Rs 262.65 crore. Minority interest being Rs 52.57 crore of loss, at a
fall of 22% the net profit after minority interest was higher by 20% to Rs
210.08 crore.
Other information
* For the purpose of consolidation, depreciation in respect of power
sector subsidiaries for the current year has been uniformly charged based on
rates as prescribed under Schedule XIV of the Companies Act, 1956 amounting
to Rs.29.57 crore (Previous quarter: Rs.28.17 crore). Depreciation on assets
of such subsidiaries is charged in financial statements of individual
entities on different basis aggregating to Rs.60.69 crore (Previous quarter:
Rs.59.35 crore) following accounting policies/rates which are considered
appropriate in each case.
* GHIAL has not been able to levy the User Development Fee (UDF) on
overseas passengers for three weeks in April 2008 and on domestic passengers
for the entire current quarter, pending approval from the Government of
India.
* The expiry of the seven year Power Purchase Agreement, GMR Energy
220 MW plant at Tanir Bavi near Mangalore in Karnataka ceased to operate.
Work has been undertaken to relocate the plant to KG Basin, near Kakinada in
Andhra Pradesh to operate it as merchant plant after changes to run the
plant with natural gas as fuel.
* The Company, through its step-down subsidiary, GMR Energy Global,
has entered into necessary arrangements to acquire 50% equity stake in Inter
Gen NV by means of Compulsory Convertible Debentures. The Company has also
given a corporate guarantee up to a maximum of USD 130 crore to the mandated
lead arrangers on behalf of a fellow subsidiary to enable it to raise debt
for financing the aforesaid acquisition.
* Delhi International Airport (DIAL) and Outlook Group have entered
into an agreement to launch a premium monthly magazine 'Outlook Lounge'
catering to the air travelers.
* The promoter's shareholding decreased from 80.60% as on 30th June
2007 to 73.28% as on 30th June 2008.
* The scrip was trading at Rs 101.20 in BSE as on 8th August 2008.
No comments:
Post a Comment