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GMR Infra could lose Rs 1,200 cr a year

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 21:00 hrs

pThe GMR Infrastructure-led consortium managing the Ibrahim Nasir International Airport project in Maldives would lose Rs 1200 crore in revenues a year with the island nation cancelling the operations contractppThe company reported Rs 1200 crore in revenue from Male airport in 2011-12 This was a sixth of the Rs 7600-crore revenue GMR reported the last financial yearppA Singapore court had ordered GMR Infrastructure to vacate the airport by midnight on Friday after the Maldivian government scrapped the contract of the Bangalore-based company to run the airportpp br br GMR Infrastructure was poised to see a hockey-stick growth &mdash a term for exponential rise in revenues after an inflection point &mdash from its operation of the airportppThe Male International Airport operations which a GMR-Malaysia Airports combine was running for nearly three years reported a 25 times jump in net profit at Rs 83 crore for the first half of this financial year and a 34 per cent jump in revenue at Rs 600 crore Operating margins too have been improving at an enviable pace &mdash doubling to 22 per cent for the first half of FY13 against 11 per cent during FY12ppOne of the key elements for the revenue growth from the airport was the high percentage of inflow from fuel sales rather than revenue from passengers passing throughppAs much as 75 per cent of the revenues came from fuel salesppFuel sales in Indian airports are managed by oil marketing companies while airport operators charge a throughput fee In airports in Male and Turkey however the airport operator supplies fuel to airlinesppThis was one of the key reasons GMR entered the airport project and into another international airport in Turkey &ldquoFuel sales and non-aero revenues such as duty-free shops were among the key elements for us to bid for the airport at Male though not discounting the huge tourist inflow into Maldives&rdquo a senior official of GMR Infrastructure told Business StandardppWith GMR&rsquos Delhi airport just about starting to turn the corner thanks to the airport development fee and its Hyderabad airport already in the black its airport segment was on an accelerated growth pathppThe Male airport project contributed at Rs 660 crore around 13 per cent to GMR Infrastructure&rsquos top line and around 23 per cent to the airport vertical in the first half of FY13 The airport vertical with four projects brought in 55 per cent of the revenue of around Rs 5000 crore during the first half of the financial yearppIn addition to the growing fuel sales GMR was poised to reap the revenues of increase in passenger revenues from its operations at Maldives As GMR was offsetting the 25 as airport development fee from the revenue-share with the government this core segment too was on a hockey-stick growth Aeronautical revenue &mdash for use of infrastructure &mdash shot up by four times at Rs 106 crore while non-aeronautical revenue such as duty-free shops grew by 62 per cent at Rs 174 crorep


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