GMR Airports (GMRINFRA) Q1 24/25 earnings summary

Executive summary

• Completion of the merger marks the first earnings call as a unified entity, streamlining the corporate structure and enhancing governance, with minority shareholders gaining closer access to airport assets and cash flows.

• Consolidated revenue from operations rose 19% year-over-year to INR 24.0 billion in Q1 FY25, with growth across all airports.

• EBITDA increased 18% year-over-year to INR 10.2 billion, with margins at 52%.

• Net loss widened to INR 3.4 billion from a profit of INR 0.2 billion in Q1 FY24, mainly due to higher finance costs and depreciation post-expansion.

• Passenger traffic reached 31.8 million, up 7% year-over-year, with Indian airports handling 27% of total India passenger traffic.

Financial highlights

• Q1 FY25 total income reached INR 25.2 billion, up 19% year-over-year, driven by traffic growth.

• EBITDA for Q1 FY25 stood at INR 10.2 billion, up 18% year-over-year and 8% sequentially.

• Net loss from continuing operations was INR 3.4 billion due to higher finance costs and depreciation post-expansion.

• Net debt increased by INR 8.8 billion sequentially to INR 280 billion, mainly due to capex and new borrowings.

• Finance costs increased to INR 889.42 crore in Q1 FY25 from INR 575.94 crore in Q1 FY24.

Outlook and guidance

• Expectation of tariff order for Delhi Airport by the last quarter of FY25, effective from April 2024.

• Non-aero and EBITDA growth anticipated to accelerate in Q3 and Q4 as new terminal capacity and retail offerings ramp up.

• Net debt expected to peak in the next 12–18 months before declining as new projects complete and cash flows improve.

• Management expects revenue and margins to improve in subsequent quarters following receipt of new tariff orders for DIAL and GHIAL.

• Focus on deleveraging and optimizing debt at GIL.