GMR Infra loss widens 72% to Rs 235 cr in Q1

GMR Infrastructure’s net loss on a consolidated basis widened by 72% year-on-year (y-o-y) to Rs 235.14 crore in the quarter ended June 30 on dwindling profits from its airports business and rising losses on the power segment.

Revenue in the quarter fell about 33% to Rs 1,876.2 crore from the same period last year. Profits from the company’s flagship airport segment fell 60% y-o-y to Rs 277 crore, notwithstanding the 14% traffic growth in the same period. Losses in the power business widened by 10% to Rs 184.2 crore.

GMR’s earnings before interest, taxes, depreciation and amortisation (Ebitda) fell by 55% to Rs 337 crore in the quarter, while Ebitda margin fell to 20.4% from 29% y-o-y.

SR Batliboi & Associates have observed that the group has not accounted for the diminution in the investments made in the Chhattisgarh power plant.

“In our opinion, the aforesaid accounting treatment is not in accordance with the relevant accounting standards. Had the management provided for the aforesaid diminution, the loss after tax and minority interest cumulatively up to June 30, 2018, would have been higher by Rs 2,250 crore,” the external auditor said.

The company’s 1,370 MW coal based thermal power plant at Raipur, Chhattisgarh, does not have any long-term power purchase agreements and has accumulated losses of Rs 3,387.5 crore as at June 30. Lenders to the project are looking for new buyers.

According to the company, utilisation levels of GMR’s two operational plants, however, are showing improvement.

The 1,400-MW Kamalanga power plant clocked plant load factor of 83% against 65% in the corresponding quarter last year, while utilisation levels of the 600 MW Warora plant went up to 81% against 77% y-o-y.

GMR Group