IDFC Securities - GMR Infrastructure (GMRINFRA) GMR Infrastructures Q3FY20 results (Outperformer) - Air traffic growth improved at the airports; deleveraging process gains momentum

Report

IDFC Securities

Shirish Rane

GMR Infrastructure's Q3FY20 results (Outperformer) - Air traffic growth improved at the airports; deleveraging process gains momentum

Q3FY20 result highlights

Airport traffic recovered in Q3FY20 with Delhi Airport witnessing a 7% yoy growth in passenger (vs 5% decline in H1FY20) and Hyderabad Airport reporting a 9% growth in passenger traffic (vs 4.9% in H1FY20). Note that traffic was subdued in H1 because of Jet Airways shutdown of operations.
GMR Infrastructure (GMR) revenues grew by 11% yoy to Rs16.7bn aided by strong non aero revenues growth of 12% and 138% yoy growth in rental revenues. EBITDA for airport business was Rs6.7bn, +28% yoy
Energy Business - Warora and Kamalanga PLF for Q3FY20 was 81% (vs 75% in Q3FY19) and 63% (vs 74% in Q3FY19). As a result, power assets reported EBITDA of Rs4bn (Vs Rs3.8bn in Q2FY19).
Consolidated EBITDA was Rs7.3bn, +78% up yoy. As a result, GMR Infrastructure’s (GMR) Q3FY20 adjusted net loss came in at Rs3.7bn (vs loss of Rs6.5bn in Q3FY19)
GMR has entered into an agreement to sale 100% stake in GMR Kamalanga at an enterprise value of Rs53bn (equity value of Rs14bn). Proceeds will be used to reduce corporate debt.
Earlier, GMR had entered into agreement to sell 44% stake in airport business to Tata Sons, GIC and SSG at an EV of Rs225bn (Rs180bn base EV + Rs45bn earn outs). During the quarter, GMR has agreed to sale additional 5% stake to strategic investors. Post the investment by strategic investor, GMR is likely to restructure the business into two separate verticals a) airport business b) Power and urban infrastructure business

Key positives: Improvement in passenger traffic at the airports; Sale of Kamalanga power plant

Key negatives: Delay in approval of stake sale in airports

Impact on financials: Maintain our estimates for FY20E/FY21E

Valuations & view

GMR’s has entered into an agreement to sell 49% stake in airport business and a large part of proceeds utilise the money to repay corporate debt. Further, GMR has also entered in an agreement to sell to Kamalanga power plant to JSW Energy thereby further reducing the corporate debt. After the completion of both these transactions, we expect GMR to be demerged into 2 separate companies namely Airport Company and power & urban infrastructure company, thereby further unlocking value in airports business for shareholders. Maintain Outperformer with a revised TP of Rs25.

24/02/2020 12 EN

Underlying

GMR Infrastructure

GMR Infrastructure is engaged in infrastructure management with interests in airports, energy, highways and urban infrastructure sectors. Co. operates India's busiest airport, the Indira Gandhi International Airport in New Delhi, where it has built a brand new integrated terminal T3. Co. has 15 power generation assets of which eight are operational and seven are under various stages of development. Co.'s highway business has eight road assets with seven operational highways. Four projects are on annuity model and four are toll based, with one project under development. In addition to property development and construction, Co. promotes a cricket team, the Delhi Daredevils.

See profile

INE776C01039 National Stock Exchange of India India

Provider

IDFC Securities

IDFC Securities Ltd., a subsidiary of the Infrastructure Development Finance Company (IDFC) wherein the Government of India holds a 20% interest, is India's leading equities broker catering to most of the prominent financial institutions, both foreign and domestic investing in Indian equities. A research team of experienced and dedicated experts ensures the flow of critically investigated stock ideas and portfolio strategies for our clients. Our coverage spans across various growth sectors such as agriculture, automobiles, Consumer Goods, Technology, Healthcare, Infrastructure, Media, Power, Real Estate, Telecom, Capital Goods, Logistics, Cement amongst other sectors. Our clients value us for our strong research-led investment ideas, superior client servicing track record and exceptional execution skills.

See profile

Analysts

Shirish Rane

Other Reports on these Companies

MarketLine

IRB Infrastructure Developers Ltd - Company Profile and SWOT Analysis

Summary IRB Infrastructure Developers Ltd - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights IRB Infrastructure Developers Ltd (IRB) is a construction and development company. It undertakes the construction of various projects including BOT (build, operate and transfer) road, bridges and highway infrastructure projects. It performs operations through its subsidiaries spread ...

EUR 163.91

December 30, 2023 December 30, 2023 1 EN

SmartInsider

GMR Airports Infrastructure Ltd: 1 director

A director at GMR Airports Infrastructure Ltd bought 4,500,000 shares at 40.936INR and the significance rating of the trade was 78/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules...

Free Trial

June 2, 2023 June 2, 2023 1 EN

TheScreener

GMR INFRASTRUCTURE sees a downgrade to Slightly Negative on account of less fundamental stars

The independent financial analyst theScreener just lowered the general evaluation of GMR INFRASTRUCTURE (IN), active in the Heavy Construction industry. As regards its fundamental valuation, the title now shows 1 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date February 11, 2022, the closing price was INR 42.35 and its target price was estimated at INR 32.22.

Free Trial

February 12, 2022 February 12, 2022 1 EN

Ambuja Cement's Q4CY19 results (Outperformer) - In line; cost efficiencies at play

Q4CY19 result highlights Adj PAT +54% yoy to Rs4.55bn: was above estimates on lower tax (shifted to new tax regime) while operational performance was in-line. Volume increased 6.7% yoy: to 6.54mn tons led by pickup in demand in North and East, growing ahead of industry (mkt share gains). Realisations +2.7% yoy: to Rs4795/t due to sharp price hikes across regions in 1HCY19. This was further augmented by 14% yoy growth in premium products. Hence, revenue was up 9.5% yoy to Rs31.4bn. However, on a qoq basis realisations fell by Rs198/t (-4% qoq) as prices have corrected across regions from p...

February 24, 2020 February 24, 2020 6 EN

Nitin Agarwal

Nitin Agarwal

Event update: Aurobindo Pharma (Outperformer) - Unit IV receives EIR; positive outcome

Event Unit IV has received an Establishment Inspection Report (EIR) with Voluntary Action Initiated (VAI) status by USFDA Key highlights With the receipt of this status, FDA will now start granting new ANDA approvals from this facility. Notably, in mid-November, the USFDA had conducted a surprise inspection for nearly 10 days in Unit 4, post which it had issued 14 observations. While our read of the observations suggested that most of these were primarily procedural, market has been concerned around potential escalation of the issues into an OAI which, in turn, would have impacted revenu...

February 24, 2020 February 24, 2020 4 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

GMR Infrastructure's Q3FY20 results (Outperformer) - Air traffic growth improved at the airports; deleveraging process gains momentum

IRB Infrastructure Developers Ltd - Company Profile and SWOT Analysis

GMR Airports Infrastructure Ltd: 1 director

GMR INFRASTRUCTURE sees a downgrade to Slightly Negative on account of less fundamental stars

Ambuja Cement's Q4CY19 results (Outperformer) - In line; cost efficiencies at play

Event update: Aurobindo Pharma (Outperformer) - Unit IV receives EIR; positive outcome

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe