GMR makes $4.6m profit from Male

A report by Centre for Asia Pacific Aviation (CAPA) indicates that GMR made a profit of $4.6m from Ibrahim Nasir International Airport (INIA) in the first quarter of 2012.

CAPA, which conducts studies in the civil aviation sector, said that GMR’s revenues from INIA stood at $49.1m in Q1, and after deduction of tax, made a profit of $4.6m. They noted that compared with the same period last year, the revenue and profit have remained the same in the first quarter of this year.

Out of the four airports operated by GMR, INIA generated most profit. Revenue from New Delhi airport was $42.1m, however tax deduction resulted in a loss of $41.9m. Revenue from Hyderabad airport was $31.9m, and profit was $2.2m. Revenue from Istanbul Airport was lower than last year, at $5.2m.

Revenue from INIA is high due to strong free cash flow. The increase in rent of land and other fees accounted for the increased revenues. GMR estimated an increase in traffic of 15% at INIA in Q1 of 2012.

The report cited the Chairman of GMR Group G.M. Rao and said that the profit from INIA is likely to increase, and estimated that the profit of GMR will reach $1.8b this year. GMR’s revenue in Q1 is $406.9m.

However GMR’s airport sector debt amounts to $2b. CAPA estimates that this amount will increase as a result of development work at INIA, and it would take about five to seven years to break even.

The report noted GMR’s intention to conduct an IPO, or sell shares to the public, by 2016. They are also planning on investing in more airports.

Even though some airports made profit, GMR made an overall loss of $36m in the past three months. The report stated that this was the result of the loss made by New Delhi airport.