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B o t t o m l i n e p a i n t o p e r s i st t i l l t a r i f f f i x a t i o n …
GMR Infrastructure’s (GMR) reported improved performance
operationally in Q1FY12 in the airport & power division. The bottomline,
however, remained in red, due to higher interest and depreciation
charges at DIAL. GMR still awaits decision on tariff fixation for Aero
charges and ADF issue, which we believe will be key catalyst to
determine airport division profitability going ahead. We maintain Hold
recommendation on the stock with SOTP price target of | 35.
ƒ Revenues grew 51.3% to | 1864 crore in Q1FY12
GMR’s revenues grew 51.3% y-o-y to | 1864 crore on the back of strong
performance of airport (~83% y-o-y jump in revenues on the back of
consolidation of Male Airport & healthy traffic growth), and power
(~18% y-o-y jump in revenues). On the bottom line level, adjusting for
one time loss of | 22 crore (| 16 crore for closure of Intergen head office
& associated foreign loan), the net loss was at ~| 45 crore, slightly lower
losses than expected.
ƒ Govt. framework to determine airport’s profitability going ahead
While higher interest expenses and depreciation continue to impact the
bottomline of airport division currently, we believe any development on
AERA initiatives towards fixation of Aero charges would act as key
catalyst for the airport division profitability. Decision is still awaited on
tariff framework and ADF issue which will be key monitorable.
ƒ Emerges as L1 bidder for biggest project by NHAI
GMR recently emerged as L-1 bidder for mega project covering
Kishangarh-Udaipur-Ahmedabad stretch. It is the biggest road stretch
(556 km) project worth ~| 5400 and the concession period is 26 years.
GMR will pay a premium of | 636 crore p.a. with 5% hike every year.
The company is confident of earning a healthy IRR (>18%) on the
project.
V a l u a t i o n
At the CMP, the stock is trading at 1.3x FY13E P/BV. We maintain our Hold
recommendation on the stock with SOTP price target of | 35 per share
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
B o t t o m l i n e p a i n t o p e r s i st t i l l t a r i f f f i x a t i o n …
GMR Infrastructure’s (GMR) reported improved performance
operationally in Q1FY12 in the airport & power division. The bottomline,
however, remained in red, due to higher interest and depreciation
charges at DIAL. GMR still awaits decision on tariff fixation for Aero
charges and ADF issue, which we believe will be key catalyst to
determine airport division profitability going ahead. We maintain Hold
recommendation on the stock with SOTP price target of | 35.
ƒ Revenues grew 51.3% to | 1864 crore in Q1FY12
GMR’s revenues grew 51.3% y-o-y to | 1864 crore on the back of strong
performance of airport (~83% y-o-y jump in revenues on the back of
consolidation of Male Airport & healthy traffic growth), and power
(~18% y-o-y jump in revenues). On the bottom line level, adjusting for
one time loss of | 22 crore (| 16 crore for closure of Intergen head office
& associated foreign loan), the net loss was at ~| 45 crore, slightly lower
losses than expected.
ƒ Govt. framework to determine airport’s profitability going ahead
While higher interest expenses and depreciation continue to impact the
bottomline of airport division currently, we believe any development on
AERA initiatives towards fixation of Aero charges would act as key
catalyst for the airport division profitability. Decision is still awaited on
tariff framework and ADF issue which will be key monitorable.
ƒ Emerges as L1 bidder for biggest project by NHAI
GMR recently emerged as L-1 bidder for mega project covering
Kishangarh-Udaipur-Ahmedabad stretch. It is the biggest road stretch
(556 km) project worth ~| 5400 and the concession period is 26 years.
GMR will pay a premium of | 636 crore p.a. with 5% hike every year.
The company is confident of earning a healthy IRR (>18%) on the
project.
V a l u a t i o n
At the CMP, the stock is trading at 1.3x FY13E P/BV. We maintain our Hold
recommendation on the stock with SOTP price target of | 35 per share
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