New Delhi: New Delhi: With the Maldives government terminating the GMR Group’s contract to operate the Male airport, the company stands to lose around 20% of revenues coming from its airport operation business. What would hit the company hard is that the revenues from Male were showing robust growth as it is the gateway to Maldives, a major tourist centre.
During the July-September quarter, GMR’s total revenues from the airport segment stood at R1,469 crore, of which around R300 crore came from the Male airport operations. This was a 35% growth over the revenues booked during the same period last fiscal. The period also saw strong operational performance with a 10% y-o-y growth in traffic. Ebitda grew y-o-y to R71 crore and net profit was up 193% at R57 crore.
Apart from losing a growing business, the fate of the company’s investment of $150 million, apart from the acquisition fee of $78 million, has become uncertain.
29/11/12 Financial Express
