On Friday, Midcap airport infrastructure stock rose 6 percent to its intraday high of Rs 77.8 per share from its previous close of Rs 73.4 after NIIF invested up to Rs 675 crore in the upcoming greenfield airport, Andhra Pradesh developed by the company.
According to their filing, GMR Airports Limited (GAL), a subsidiary of GMR Airports Infrastructure Limited, and the National Investment and Infrastructure Fund (NIIF) have entered into binding agreements for NIIF to invest up to INR 675 crores in GMR Visakhapatnam International Airport Limited (GVIAL).
This greenfield project will initially serve 60 lakh passengers, increasing to 4 crore in the future. The support of the NIIF fuels air travel, connectivity, and economic growth in northern Andhra Pradesh, aligning with national efforts to connect smaller cities.
According to the financial report of GMR Airports Infrastructure Ltd, net revenue increased by 30 percent year on year, from Rs 1,583 crore in Q2FY23 to Rs 2,063 crore in Q2FY24.
In addition, the company’s net loss decreased by 2.6 percent year over year, from a net loss of Rs 197 crores in Q2FY23 to a net loss of Rs 190 crores in Q2FY24.
In addition, the company’s debtor days have decreased from 55.7 to 20.1 days. However, the company remains in net loss, and the ratios like return on equity, net profit margin, and debt-to-equity ratio of the company are also negative.
GMR Airports Infrastructure Limited is a midcap company with a market capitalization of Rs 45,810 crores. The company’s share price has risen by 86 percent year to date and by 79 percent during the previous six months.
The promoters own 59 percent of the company, with foreign institutional investors owning 28 percent, the general public owning 8.7 percent, and domestic institutional investors owning 4.3 percent.
GMR Infrastructure’s primary activities include airport development, maintenance, and operation, power generation, coal mining and exploration, highway development, special economic zone development, maintenance, and operation, and construction business, including Engineering, Procurement, and Construction (EPC) contracting.
Written by Sriram KV
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