GMR Infrastructure announces Q3 -FY 12 results
GMR Infrastructure, which recently announced its Q3-FY 12 result, reported a surge in the net revenues by 47 per cent. The company said it managed to do so despite lower PLF in energy sector due to lower gas availability for both the operating gas projects and major maintenance shutdown of Vemagiri power. GMR also suffered loss of revenue in its energy sector due to floods in its South Africa coal mine.
“The loss of Rs229 crore incurred by Delhi Airport for the quarter, pending tariff revision, coupled with an interest charge of Rs17 crore on account of loan borrowed for Sinar Mas acquisition, corresponding revenues of which will be consolidated from next quarter, resulted in the increased consolidated loss at Rs108 crore for the quarter,” the company said.
GMR’s operating toll road projects recorded a revenue growth of 8 per cent for the quarter. “The highways segment is nearing the breakeven PAT position, despite the crippling losses in Ambala Chandigarh project due to massive traffic diversion. The company is legally contesting the development of an alternative road, resulting in the said diversion,” the company said.
GM Rao, group chairman, said: “The imminent tariff revision for DIAL together the government’s initiatives for resolution of the power sector concerns would make our journey heartening in terms of cash flows and profitability. We are also happy to report the closure of 30 per cent equity stake sale in our 800 MW Singapore Power Project to Petronas International Corporation, marking the beginning of a remarkable partnership. Our baby steps in renewable energy space got bigger with the commissioning of a 25 MW solar power plant in Gujarat, where we earlier commissioned a 2.1 MW wind power plant.”
He said the company is getting ready to take over the operations of the mega project ‘Kishangarh–Udaipur–Ahmedabad expressway’ from May 2012, which will give significant cash flow.
“We are watchful of the uncertain global economic environment and the ups and downs of the local economy. We are focusing on making our internal operations reach the next level of efficiency, through our business excellence framework, aligned to Malcolm Baldridge Quality model. Our focus is on cash and we are putting high emphasis on sweating our assets. This is already yielding good results,” he said.
The EPC Division of the company partially executes the company’s own road projects and civil works of the power projects, while a major chunk of the construction of these projects is still being outsourced. With the execution of the road projects gathering pace, the division is registering sharp increase in revenues and EBITDA, the company said.