GMR Infrastructure recorded a net loss of ₹561 crore for the December quarter as finance costs soared, other income fell and losses in the power vertical continued to dim the profits made by airport vertical. This company made a net loss of ₹578 crore in the same quarter a year earlier.
The loss came on the back of a 5.5% fall in revenue to ₹1,958 crore and a 14% fall in earnings before interest, tax, depreciation and amortisation to ₹412 crore. Interest costs climbed 13% to ₹719 crore while other income fell 20.6% to ₹162 crore.
Losses in power vertical
The power vertical of the group continued to reel under losses, clocking ₹184.48 crore, offsetting the ₹364.74 crore profit by the airports segment. The firm’s board approved the constitution of a sub-committee to consider and evaluate options of a demerger to unlock shareholder value in the existing business of the group.
The committee will look at ‘the next phase of growth considering government's stated intent of faster privatisation of airports in the country which is $100-billion investment opportunity, raising equity capital in the airport business, and accelerated de-leveraging of company’. In a filing with the exchanges on Friday, the company said “The company has already received multiple proposals from investors for the airports business that are currently being evaluated and shall be placed at the meeting of the newly constituted sub-committee. The committee to provide its recommendation expeditiously.” Shares of GMR closed up marginally at ₹14.85 on the BSE in a weak Mumbai market on Friday.
