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

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

Operational Performance

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

Key Developments

1. Tariff Implementation: DIAL implemented revised tariffs for Control Period 4, resulting in significant improvement in its financials.

2. Legal Developments: The Delhi High Court upheld an arbitral award in favor of DIAL regarding Monthly Annual Fee (MAF) payments to Airports Authority of India (AAI) for the period from March 19, 2020, to February 28, 2022.

3. Dividend Declaration: GMR Hyderabad International Airport Limited declared a second dividend of INR 2.50 per share, bringing the total dividend to INR 10.00 per share (INR 378.00 crore).

4. Expansion of Non-Aero Businesses: GAL is making strides in expanding its non-aeronautical revenue streams:

   • Took over cargo operations at Delhi Airport from mid-May
   • Started operating duty-free business at Delhi Airport from July 28
   • Set to take over duty-free operations at Hyderabad Airport in Q2

5. Credit Rating Upgrade: India Ratings and Research upgraded DIAL's debt instruments to 'IND AA' with a Stable Outlook, reflecting improved financial performance and outlook.

Airport-wise Performance

• Delhi Airport (DIAL): Reported its highest EBITDA since Q1 FY22, despite a slight 1.2% decrease in passenger traffic.
• Hyderabad Airport (GHIAL): Achieved record quarterly traffic and EBITDA.
• Goa Airport: Captured about 43% market share of Goa's system traffic in Q1.

Future Outlook

GAL continues to focus on expanding its airport adjacency businesses and land monetization efforts. The company is also making steady progress on greenfield projects such as Bhogapuram Airport in Visakhapatnam and Crete Airport in Greece.

Grandhi Kiran Kumar, Managing Director & CEO of GMR Airports Limited, commented, "Our Q1 results demonstrate the strength of our diversified airport portfolio and the success of our strategic initiatives. We remain committed to enhancing passenger experience, expanding our non-aero revenues, and creating value for all stakeholders."

As GMR Airports Limited continues to strengthen its position in the global aviation sector, the company's focus on operational excellence and strategic expansion is expected to drive sustainable growth in the coming quarters.

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."