GMR Infra share price nosedived by 11% as net loss widens in Q4
2 min read 29 May 2023, 03:15 PM ISTStock price of GMR Airports Infra nosedived by 11% on Monday as investors sentiment turned bearish after Q4 net loss widens drastically. EBITDA also nearly halved in the quarter. GMR expects near-term traffic growth to be under pressure.
PremiumGMR Airports Infrastructure share price nosedived by a little over 11% on BSE during Monday's trading session as the company's net loss widens steeply in the fourth quarter of FY23. GMR Infra traded near its day's low.
At the time of writing, GMR Infra's share price traded at ₹40.60 apiece down by 9.82% on BSE.
The stock has tumbled by at least 11.15% with an intraday low of ₹40 apiece.
Investors dumped the shares after GMR Infra posted a net loss of ₹637 crore in Q4FY23, widening from a loss of ₹129 crore in Q4FY22. Also, the Q4 performance turned into losses after the company had recorded a net profit of ₹105 crore in December 2022 quarter.
EBITDA also nearly halved in Q4FY23 to ₹259 crore --- as against ₹534 crore in Q4FY22 and ₹530 crore.
However, net revenue picked up momentum. Gross revenue stood at ₹1,895 crore in Q4FY23, up from ₹1,284 crore in Q4 of the previous fiscal and ₹1,766 crore in Q3FY23.
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In the quarter, with an objective to enhance shareholder value by simplifying the corporate structure and bringing public shareholders closer to the airport assets, GMR announced the execution of the Agreement and Scheme of Merger of GAL with GIL. So far, CCI approval for the merger has been received and an application has been filed with Stock exchanges and the Reserve Bank of India (RBI).
As part of the process, GIL and Groupe ADP will settle the cash earnouts to GIL at ₹550 crore and also the equity earnouts to GIL. Also, GIL raised ₹2,900 crore from Groupe ADP through a 10-year 6.76% p.a. coupon (Simple Interest) FCCBs due in 2033.
Upon completion of the merger, GMR Group will remain the single largest shareholder of GIL, with GMR Group owning 33.7%, Groupe ADP holding 32.3%, and Public holding 34.0% respectively of the paid-up equity share capital. This merger is expected to be completed in FY24.
Further, in the quarter, COD was achieved and domestic operations at Mopa Airport commenced on January 5, 2023. IndiGo, Akasa, GoAir, Spicejet, and Vistara are operational.
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Also, GMR Goa International Airport Limited (GGIAL) has received ₹631 crore from National Investment and Infrastructure Fund (NIIF) towards subscription of Compulsory Convertible Debentures (CCDs) of GGIAL.
According to GMR, at Delhi and Hyderabad airports, near-term traffic may face some headwinds from supply-side constraints including the bankruptcy of GoFirst airline and engine issues. However, traffic is expected to gain further momentum in the medium to long term.
At Delhi airport, pax traffic improved by 49% YoY from 11.9 million in Q4FY22 to 17.7 million in Q4FY23. On a QoQ basis, traffic increased by 2% in Q4FY23. While Hyderabad airport's pac traffic increased by 52% YoY from 3.8 million in Q4FY22 to 5.7 million in Q4FY23. On a QoQ basis, traffic increased by 5% in Q4FY23.
For the full year FY23, the company's net loss was at ₹840 crore widening from a loss of ₹752 crore in FY23. However, gross revenue jumped to ₹6,693 crore versus ₹4,601 crore in FY22.
