GMR Infrastructure: Nod for airport fee to give revenues a lift

Adiversified infrastructure companies, GMR Infrastructure, which has interests in building airports, highways to power plants, is set to benefit from the clearance for collection of Airport Development Fee (ADF) by Airports Economic Regulatory Authority of India at the Delhi Airport.
In the recent past, GMR Infrahad incurred a loss of Rs 100 crore due to a temporary suspension of collection of ADF by the Supreme Court to arrive at a certain fee collection. With this clearance, the company will see increased revenues from the airport segment of its business.
In the past few years, the contribution from the airport segment has been consistently increasing and played a major role in enhancing overall revenues. In the September quarter, GMR Infra's airport segment contributed 42% to its total revenues of Rs 1,959 crore. The company's revenues from airports division showed a year-on-year growth of 67% to Rs 835 crore.
This growth was due to a robust 20% improvement in passenger traffic in the first half of this year and a strong contribution of Male airport acquired by the company last year. In the coming quarters, taking into account the upcoming holiday season, which will ensure a healthy passenger growth, the company will see increased revenues.
16/11/11 Suraj Sowkar & Rajesh Naidu/Economic Times

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Categories: airports Nov 2011