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GMR Infra suffers Rs 2,341-crore loss in Q4
Books impairment loss of Rs 1,242 cr on its investments in GMR Energy
Hyderabad: Hyderabad: GMR Infrastructure Thursday posted a consolidated loss of Rs 2,341.25 crore in the March 2019 quarter, mainly due to impairment losses related to some power assets.
The diversified group had reported a consolidated profit after tax of Rs 4.81 crore during the corresponding period last fiscal.
Consolidated total income of the group stood at Rs 2,293.63 crore in the fourth quarter of FY19 compared to Rs 2,234.88 crore in the year-ago period, according to a regulatory filing.
GMR booked an impairment loss of Rs 1,242.72 crore in the value of group's investment in GMR Energy Ltd and its subsidiaries/ joint ventures.
There was also an impairment loss of Rs 969.58 crore related to GMR Chhattisgarh Energy Ltd, an associate of the group. Together, they totalled Rs 2,212.30 crore.
"Our shareholders have lost substantial amount of money in the energy space and we still continue to keep our commitment there and improve the efficiency in the existing energy assets.
We have written off the initial investment," said Suresh Chawla, Executive Director (Finance & Strategy), GMR Infra.
He further said that the group would not put more investments in energy sector. "If the regulatory environment becomes clearer and more investment friendly, obviously the board of directors will decide on investments in energy sector at that particular point in time," he maintained.
GMR Chhattisgarh Energy Ltd (GCEL) is engaged in development and operation of a 2 X 685 MW coal-based power project and had declared commercial operations of Unit I on November 1, 2015, and Unit II on March 31, 2016.
GCEL does not have any long-term PP currently and has been incurring losses since the commencement of its commercial operations and has accumulated losses of Rs 4,228.51 crore as on March 31, 2019.
The infra major's airport segment reported Rs 1,357.44-crore revenues with Rs 271.02 profit in the fourth quarter. This segment registered Rs 1,215.06-crore revenue in the year-ago period.
Group CFO Bagrodia said that for the airport segment, the company's aim is to unlock value through strategic partnership.
GMR Infra signed a binding term sheet with marquee long-term strategic and financial investors including Tata Group, GIC Singapore and SSG Capital Management for an investment of Rs 8,000 crore.
"The transaction values GAL (GMR Airports Ltd) at Rs 22,500 crore, including value from earnouts amounting to Rs 4,500 crore. The transaction will help in significant deleveraging of GIL and paves way for demerger of airport business," he said.
ED Suresh Chawla said post the transaction, the consolidated debt of the group will go down from 24,000 crore to a number 'which is far more healthy'.
"The first focus is on airport space which is growing well. Today, we are facing capacity constraints at our airports, so we need to expand infrastructure there," Chawla added. He said the airport vertical is tapping the foreign bond markets for long-term debt capital.
"Hyderabad airport achieved financial closure for expansion of capacity from 12 million to 34 million passengers and raised $300 million via five-year bonds priced at 5.375 per cent per annum," he said.
