GMR Airports Q4 Results Review - A Host Of Positives But Priced To Perfection: ICICI Securities

ICICI Securities Report

GMR Airports Infrastructure Ltd. continues to witness strong growth in passenger traffic (27 million in Q4 FY24, +23% YoY) and 103 million in FY24, +22% YoY) at its Indian airports. The absolute passengers at Delhi and Hyderbad Airports are higher than pre Covid levels (99 million pax versus 89 million pax).

As a result, the revenues for the quarter and year were Rs 18 billion and Rs 64 billion (+34% up YoY). Ebitda for the year came in at Rs 30 billion (+74% up YoY). However, it continued to report losses because of high leverage and commissioning of new airports.

We expect it to report profit in FY25E and FY26E led by traffic growth and increase in aero charges at Delhi and Hyderabad. The merger of GMR with its subsidiary is expected to reduce the complexity.

However, we believe the current prices are factoring in all positives (trading at 30 times enterprise value/Ebitda) and we maintain Reduce with SOTP based target price of Rs 75 per share.

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