GMR Airports (GMRINFRA) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 total income rose to INR 26 billion, up 20% YoY, with EBITDA up 17% to INR 9.6 billion, driven by strong passenger traffic and tariff growth.

• Passenger traffic reached 31.5 million in Q2 FY25, up 8.8% YoY, with domestic up 7% and international up 12%.

• Major expansions at Delhi, Hyderabad, and Goa airports were completed, boosting capacity and operational efficiency.

• The merger of GAL with GIL was completed in July 2024, consolidating airport assets and cash flows under GAL.

• GAL is expanding into airport adjacency businesses, real estate monetization, and ESG leadership.

Financial highlights

• Q2 FY25 income: INR 26 billion, up 20% YoY; EBITDA: INR 9.6 billion, up 17% YoY; EBITDA margin at 49%.

• Net loss for Q2 FY25 widened to INR 4.3 billion, mainly due to higher finance costs and depreciation post-expansion.

• Net debt stood at INR 287 billion as of Sep 30, 2024, up INR 7 billion QoQ, driven by capex and new borrowings.

• Delhi Airport Q2 income: INR 13.8 billion (+10% YoY), EBITDA INR 4 billion; Hyderabad: INR 5.8 billion (+15% YoY), EBITDA INR 3.7 billion.

• Goa (MOPA) Airport Q2 income: INR 978 million (+134% YoY), EBITDA INR 406 million.

Outlook and guidance

• Traffic and tariff increases, especially at Delhi, are expected to improve financials in coming quarters.

• Consultation paper for Delhi Airport tariff expected by end-November, with final order by mid-February and implementation by April 2025.

• Focus on deleveraging, completing Mopa (Goa) expansion in FY25, and accelerating greenfield projects at Crete and Bhogapuram.

• Interest costs are expected to decline due to recent refinancing at lower rates and future refinancing as the company becomes more operational.

• Losses are attributed to higher depreciation and finance costs post-capitalization of projects, considered temporary.