GMR Airports plunges 11% as Q4 loss widens

Shares of GMR Airports Infrastructure tumbled over 11% in intraday trade on Monday after the GMR Group company reported a net loss in the March quarter. The counter witnessed a surge in selling with more than 19 lakh shares changing hands over the counter as compared to a two-week average volume of 5.06 lakh shares.

Snapping its two-sessions gaining streak, GMR Airports shares opened 2.88% lower at ₹43.72 against the previous closing price of ₹45.02 on the BSE. During the session, the stock declined as much as 11.1% to hit an intraday low of ₹40, while the market capitalisation of midcap stock slipped to ₹24,457 crore. The stock touched a 52-week high and low of ₹47.27 and ₹32.30, respectively, on May 11, 2023, and June 20, 2022, respectively.

For the fourth quarter ended March 2023, the net loss of GMR Airports widened to ₹441.47 crore compared with a loss of ₹141.28 crore in the corresponding quarter of the previous fiscal year. However, the revenue from operations jumped 47.6% to ₹1,894.62 crore as against ₹1,283.60 crore in the fourth quarter of FY22.

On the operational front, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) dropped 52.5% year-on-year to ₹259.3 crore.

The company in its earnings report said that near-term traffic may face some headwinds from supply-side constraints including the insolvency of GoFirst airline and engine issues. However, traffic is expected to gain further momentum in the medium to long term from.

Region-wise, Delhi airport generated gross revenue of ₹1,086 crore in Q4FY23, up 36% from ₹801 crore in Q4FY22. Pax traffic improved by 49% YoY from 11.9 mn in Q4FY22 to 17.7 mn in Q4FY23.

The gross revenue from Hyderabad airport increased by 81% YoY from ₹193 Cr to ₹350 Cr in Q4FY23, while pax traffic climbed 52% YoY to 5.7 million.

During the quarter under review, GMR Airports Infrastructure Ltd (GIL) announced the merger of GMR Airports Limited with GIL, with an objective to enhance shareholder value by simplifying the corporate structure and bringing public shareholders closer to the airport assets. As part of the process, GIL and Groupe ADP will settle the cash earnouts to GIL at ₹550 crore and also the equity earnouts to GIL. GIL raised EUR 331 million (₹2,900 crore) from Groupe ADP through a 10-year 6.76% p.a. coupon (Simple Interest) FCCBs due in 2033.

Immediately upon completion of the merger, GMR Group will remain as the single largest shareholder of GIL, with GMR Group owning 33.7%, Groupe ADP holding 32.3%, and public holding 34.0% respectively of the paid up equity share capital. The entire merger process is expected to be completed within FY24. So far, CCI approval for merger has been received and application has been filed with Stock exchanges and Reserve Bank of India (RBI).

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