GMR Infrastructure Sees Significant Increase in Net Loss for Q2
Key Financial Highlights for Q2:
- Net loss increased by 2.4 times to Rs 398 crore compared to Rs 181 crore in the same quarter last year.
- Revenue dropped by approximately 5% to Rs 1,984 crore.
- Operating profit rose by 13.2% to Rs 582 crore, attributed to foreign exchange gains.
Challenging Times for Power Projects
GMR Infrastructure, a leading developer based in the National Capital Region, cited the lack of fuel supply for its power projects as the primary reason for the significant increase in net loss. The company's power projects, with a capacity of nearly 600 MW, have been severely impacted by the unavailability of gas.
Recent Developments in Power Sector:
- The second unit of 300 MW at EMCO has been recently commissioned.
- The 360 MW project at Kamalanga is also operational.
Airport Operations: A Silver Lining
Despite the overall decline in financial performance, GMR's airport arm contributed substantially to the company's earnings, reporting a net profit of Rs 57 crore. Airport operations in Delhi and Hyderabad have shown stability and are experiencing healthy growth. The new Istanbul airport is expected to contribute positively to the current quarter's performance.
Debt and Future Outlook
- The company's debt stands at approximately Rs 38,000 crore, with a gearing ratio of 3.7.
- Despite current challenges, GMR Infrastructure remains focused on reforms and infrastructure development, anticipating positive signs in the economy.
Quote from GM Rao, Chairman, GMR Group: The lack of gas supply for our power project has significantly impacted our performance. We are hopeful that infra policy changes will help clear blockages in the sector, paving the way for growth.