Turkish airport stake sale boosts GMR's Q4 PAT to Rs 1,170 crore

BANGALORE: Bangalore-based GMR Infrastructure’s net profit in the January-March quarter doubled to Rs 1,170 crore, propped up by asset sales, and the company expects operational income to increase in future as it expects the new government’s policies to catalyse growth in sectors such as highways, energy and aviation.

Gross revenue rose 12.42% to Rs 2,961 crore for the quarter ended March 2014. "The profit is coming out of exceptional items, asset sales. In future, we expect the profit to come from company operation. Divestment of Turkey airport generated Rs 1,670 crore of cash profit and made the operating results attractive for the group," said Madhu Terdal, Group CFO, GMR Infrastructure.

The firm had divested its 40% stake in Sabiha Gokcen Airport in Istanbul last year. On a consolidated basis, the infrastructure company’s net profit slumped to Rs 10 crore for the full year compared to Rs 88 crore for the year ended March 2013.

The total gross income increased by 6.36% to Rs 10,653 crore in the year ended March 2014 against the same period last year.

GMR’s airport division reported Rs 1,291crore profit against Rs 79 crore due to stake sale in Turkey Airport while revenue fell 11.8% to Rs 1,548 core compared to the same period last year. However, the company’s power and road business reported a loss of Rs 364 crore and Rs 69 crore each.