According to Investingindia, India’s airport and airport services industry is rapidly growing, currently hosting 157 operational airports and handling 341 million passengers annually. With a projected increase to 200 airports by FY40, the industry is set for significant expansion, driven by rising middle-class demand and government initiatives like the UDAN scheme, enhancing regional connectivity.
With a market capitalization of Rs 83,574.29 crore, the shares of GMR Airports Infrastructure Ltd were trading at Rs 79.15 per share, increasing around 1 percent as compared to the previous closing price of Rs 78.48 apiece.
Matter explanation:-
The promoters of the company increased their stake by 7%, from 59.07% in Q1FY25 to 66.07% in Q2FY25. Additionally, 14.65% is owned by retail investors, 4.46% is held by domestic institutional investors, and 14.81% is owned by foreign institutional investors.
Prominent investor GQG partners India holds 17,15,13,462 equity shares which are equivalent to 1.62 percent of the company as of September 2024.
Financial performance:-
Examining the company’s financial performance, revenue jumped by 8 percent from Rs 2,064 crore in Q1FY24 to Rs 2,495 crore in Q1FY25. During the same duration, net loss climbed by 126 percent from Rs 190 crore to Rs 429 crore.
Strategic Developments:-
GMR Airports completed its merger with GMR Airports Infrastructure Limited, streamlining its structure and improving governance. New initiatives include passenger facilitation at Delhi Airport, with Air India check-in at metro stations and biometric kiosks for immigration, plus expanded retail and F&B businesses at Hyderabad and Goa Airports.
Future outlook:-
India’s travel retail market is set to expand at a 21.6% CAGR from 2024 to 2029, driven by rapid economic growth. The Civil Aviation Minister’s commitment to infrastructure development further boosts optimism in the travel sector, supporting robust demand across airports nationwide.
Delhi Airport’s tariff proposals for the fourth control period (2024-2029) could enhance revenue if approved. The company also aims for net-zero emissions by 2030, prioritizing high ASQ scores and incorporating ESG principles to align sustainable practices with operational excellence.
International Expansion:-
The company is pursuing asset-light international expansion, focusing on airport opportunities in the Middle East. It has submitted bids for managing Kuwait Airport Terminal 2 and Abha Airport in Saudi Arabia, aiming to strengthen its global footprint and capture growth in emerging aviation markets.
Company Overview:-
GMR Airports Infrastructure Limited is an India-based company that operates integrated airport platforms with a portfolio of airport assets. The Company’s airports include Delhi International Airport, Hyderabad International Airport, Goa International Airport, Visakhapatnam International Airport, Bidar Airport, and others.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
