GMR Loss Widens After Airport Fee Loss
GMR Infrastructure's net sales rose a stronger-than-expected 47 percent in the December quarter even as the Indian company's losses mounted after it was ordered by a court to suspend collection of airport development fees at Delhi airport, which it operates.
The company, which was also hit by a higher interest bill, reported a consolidated net loss of INR1.08 billion rupees (USD$21.95 million) for the three months to December 31, compared with a loss of INR222.5 million rupees a year earlier.
Delhi Airport lost INR2.29 billion rupees in the quarter after the Delhi High Court told the company to get regulatory approval to collect development fees.
Approval was granted on November 14 and the company resumed collection of the fees in December following a six-month halt.
The adverse impact of the interruption in fee collections "would soon be mitigated", the company said in a statement.
GMR Group leads the consortium that operates the airport. The other partners are the Airports Authority of India, Germany's Fraport and Malaysia Airports Holdings.
Net sales rose to INR19.99 billion rupees in the quarter from INR13.59 billion a year earlier.
Interest charges rose to INR4.24 billion rupees from INR3.21 billion a year earlier.
CAPEX TO RISE
The company said it would set aside about INR140 billion rupees for capital expenditure for the fiscal year starting April 1, up from INR100 billion in the current year.
The additional spending will be used mainly for road projects and for building an airport in the Maldives, group chief financial officer Subbarao Amarthaluru said.
The Male airport project, which GMR Infrastructure is undertaking with Malaysia Airports Holdings, is scheduled to be completed by the end of 2014.