GMR to recoup losses after airport tariff hike:Subba Rao

GMR Infrastructure announced its September quarter results on Friday. While the company posted a 48% increase in its revenues Year-on-Year, it recorded a net loss of Rs 63 crore versus Rs 71 crore net profit.
Explaining what went wrong during the quarter under review, A Subba Rao, chief financial officer at the company told moneycontrol.com, “Our financials were hit by a weak rupee and reduced availability of gas for our Vemagiri power projects. Also, delays in tariff revision for Delhi International Airport which we run recorded a net loss of Rs 227 crore for the quarter.”
However, Subba Rao expects user tariffs for handling passengers and cargo to be revised soon by the airports regulator. This would help the company recoup losses.
“User tariffs have not been revised since 2001, despite a four-fold increase in passenger traffic in the past decade. Furthermore, the Delhi airport has gone through structural changes and grown in size, entailing sizeable capital expenditure,” he says.
12/11/11 Moneycontrol.com

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Categories: airports Nov 2011