GMR Infra posts loss of Rs66.7 crore in June quarter

GMR Infra posts loss of Rs66.7 crore in June quarter

Bangalore: GMR Infrastructure Ltd has reported a net loss of Rs66.7 crore for the quarter ended June due to a rise in interest costs and an increase in depreciation largely because of the airport business and after a stake sale in British energy firm Intergen NV.

That compares with a net profit of Rs28 crore in the year earlier. Net sales rose 51% to Rs1,864 crore.

The Bangalore-based company, which has interest in airports, energy and highways, has continued to see a rise in airport traffic — 23% in Delhi, 25% in Hyderabad and 27% in Istanbul.

GMR Infra, which has a current net debt of Rs17,000 crore, plans to bid for airports in Europe.

“While rising inflation and consequential higher interest costs are a cause of concern, this situation will not alter the long-term viability of the infrastructure projects," G.M. Rao, group chairman, said in a release.

“The long-period concessions of our projects will go through both high and low-interest regimes during their life cycle. However, as in the past, we will freeze the interest costs during their low ebbs by tying up long-term finances at fixed interest rates, thus mitigating this interest rate risk."