GMR Infrastructure Turnaround: No Green Light From Auditor Yet
GMR Infrastructure Ltd. still faces some pain at a few subsidiaries even though the developer of Hyderabad and Delhi airports pared its debt by half to Rs 19,856 crore, the company's auditor said.
Strategic debt recast, stake sales, and an arbitration award for an airport project cancelled by the Maldives government helped the company turn profitable in the year ended March, the company said in a statement. Net debt-to-operational income ratio fell by more than half to 4.3.
Also Read: GMR Infrastructure Reports Lowest Annual Loss In Three Years
The turnaround comes with a few caveats highlighted by its auditor in the notes to the company's earnings statement.
GMR Hyderabad Vijayawada Expressways Pvt. Ltd. has dues pending from the National Highway Authority of India (NHAI), the auditor said. The company, which has been incurring losses since inception, believes that revenue losses stem from the political decision to carve out Telangana from Andhra Pradesh, leading to a drop in traffic. The company filed a claim of Rs 222.79 crore to recover loss of revenue till March 2016. NHAI, however, rejected the claim, prompting the company to initiate arbitration.
There has been no progress on a 300-megawatt plant in Uttarakhand being set up by GMR Badrinath Hydro Power Generation Pvt. Ltd after the Supreme Court halted construction on 24 projects in the aftermath of the 2013 floods, the auditor said.
GMR Power Corporation Ltd. has approached the Tamil Nadu Electricity Regulatory Commission to resolve claims arising out of power-purchase and land lease agreements. The company claimed Rs 481.6 crore and has already recognised Rs 80 crore in the books, the auditor said.
GMR Infrastructure's subsidiary in Cyprus is also facing difficulties amid an economic slowdown in the Mediterranean nation. Its fixed deposits of Rs 230 crore with Eurobank in Cyprus may be difficult to recover, the auditor said, adding that the management is, however, confident of withdrawing the funds.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
