GMR Airports Limited (GAL), one of the world's largest private airport operators, has reported robust financial results for the first quarter, demonstrating significant growth and operational improvements across its portfolio.

Financial Highlights

GAL's total income surged by 32% year-over-year to ₹3,321.00 crore in Q1. The company's EBITDA saw an impressive increase of 26% compared to the same period last year, reaching ₹1,280.00 crore - a record high for the quarter. This strong performance was primarily driven by the implementation of revised tariffs at Delhi International Airport Limited (DIAL) from mid-April.

Operational Performance

The company's airports handled a total of 30.1 million passengers in Q1, representing a 4% increase year-over-year. Notably, Hyderabad Airport achieved its highest-ever quarterly traffic, surpassing 8 million passengers for the first time.

Key Developments

Tariff Implementation and Legal Proceedings

DIAL implemented revised tariffs for its fourth Control Period (CP4) from April 16, resulting in significant improvement in its financials. The company is also navigating ongoing legal proceedings regarding Monthly Annual Fees (MAF) claims, with recent judgments favoring DIAL.

Expansion of Non-Aero Businesses

GAL is making steady progress in expanding its non-aeronautical and adjacency businesses:

• The company has taken over duty-free operations at Delhi Airport from July 28.
• At Hyderabad Airport, GAL is set to take over duty-free operations in Q2.
• GMR Hospitality Limited has operationalized 25 self-operated food and beverage outlets at Hyderabad Airport.

Real Estate Development

GAL continues to advance its airport land development activities:

• At Delhi Airport, construction is underway for a commercial office building with ~1 million sq.ft. built-up area and a luxury hotel with ~0.6 million sq.ft. built-up area.
• Hyderabad Airport is developing the GMR Interchange retail project with ~0.55 million sq.ft. built-up area.

Credit Rating Upgrades

The company's improved financial performance has led to credit rating upgrades:

• CRISIL assigned 'Crisil A+/Stable' rating for GAL's proposed ₹6,000.00 crore Non-Convertible Debentures.
• CARE upgraded GAL's credit rating to CARE A; Outlook: Stable.
• India Ratings and Research upgraded DIAL's debt instruments to 'IND AA' with a Stable Outlook.

Outlook

With the implementation of new tariffs, expansion of non-aero businesses, and ongoing development projects, GMR Airports Limited is well-positioned for continued growth. The company's focus on operational excellence and diversification of revenue streams is expected to drive further improvements in financial performance in the coming quarters.

Grandhi Kiran Kumar, Managing Director & CEO of GMR Airports Limited, commented on the results: "Our strong Q1 performance reflects the successful implementation of our strategic initiatives and the resilience of our business model. We remain committed to enhancing the passenger experience, expanding our non-aero offerings, and creating long-term value for our stakeholders."

GMR Airports Limited (GAL) has approved its unaudited financial results for Q2, revealing mixed performance across standalone and consolidated figures.

Financial Results

On a standalone basis, GAL reported revenue of Rs. 477.97 crore and a loss after tax of Rs. 178.00 crore. The consolidated results showed a higher revenue of Rs. 3,205.23 crore, but still resulted in a loss after tax of Rs. 137.11 crore.

Key Board Decisions

Bond Issuance

The Board has authorized the issuance of non-convertible bonds worth up to Rs. 6,000.00 crore. This move is aimed at refinancing existing bonds, potentially improving the company's debt structure.

New Secretarial Auditor

M/s. V Sreedharan & Associates has been appointed as the Secretarial Auditor for a 5-year term from FY 2025-26 to FY 2029-30, subject to shareholder approval.

Operational Highlights

Duty-Free Operations

GMR Airports commenced duty-free operations at Delhi Airport on July 28. This follows a license agreement that was signed in August of the previous year, marking an expansion of the company's non-aeronautical business activities.

Outlook

While the company continues to face challenges as evidenced by the reported losses, the strategic decisions made by the Board, such as the bond issuance and expansion into duty-free operations, indicate efforts to strengthen financial position and diversify revenue streams.

The appointment of a new Secretarial Auditor for a long-term period suggests a focus on maintaining strong corporate governance practices.

GMR Airports Limited continues to navigate a complex business environment, balancing expansion efforts with financial management strategies. The coming quarters will be crucial in determining the effectiveness of these measures in improving the company's overall performance.