New Delhi: GMR Group on Friday said it is planning to refinance loans and divest assets in road and power sectors to cut debt even as it is looking at investing up to Rs7,400 crore to expand Delhi and Hyderabad airports.
“We are focusing on divestment and monetisation of land in Kakinada and Krishnagiri. That should give us somewhere between Rs1,000-Rs1,200 crore. This is number one," Madhu Terdal Group CFO told reporters in New Delhi.
“We have just divested our Indonesian coal mines that will give us another Rs400 crore of cash. Now we are going to monetise our roads that should give us somewhere between Rs500 to Rs600 crore," he added. The company’s gross debt has reduced to Rs19,856 crore from Rs37,480 crore, he said.
“These (plans) are in the realm of possibility in the current year... We can go for an IPO in GMR Energy. So all these options are available... They are all going to reduce the level of debt," he said.
The company’s net debt to EBIDTA, or operating profit, in 2016-17 came down to 4.3% from 10.2% in 2015-16. GMR, Terdal said, is also focusing on refinancing its debt and monetising land in various businesses.
Stating that the company is planning expansion for around Rs4,500-Rs5,000 crore at Delhi Airport, Terdal asserted that GMR was sitting on a cash of more than Rs2,700 crore in Delhi Airport.
“Hyderabad is undertaking an expansion of around Rs2,400 crore. We are sitting on more than Rs1,000 crore of cash in Hyderabad Airort," he added. He said Rs8,236 crore is the company’s net revenue, of which the contribution of Rs2,989 crore is from Delhi Airport, Rs1,057 crore from Hyderabad Airport and Rs264 crore is from Cebu Airport, the Philippines.