GMR Airports Narrows Losses in Q4, Jefferies Maintains 'Buy' Call

GMR Airports Infrastructure has reduced its losses in the March quarter prompting global brokerage Jefferies to maintain its positive call on the company. 

What Happened: In the March quarter, GMR Airports' losses narrowed to ₹167.6 crore. In the previous year, the operator of Delhi and Hyderabad international airports had a net loss of ₹638.9 crore.

The company's revenue jumped 29.5% to ₹2446.8 crore compared to ₹1889.7 crore in the corresponding quarter last year. EBITDA increased to ₹816 crore from ₹254 crore in the previous year. EBITDA margin also increased to 33.4% against 13.5% in the previous year. 

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For Delhi airport, the passenger traffic rose 8.2% year on year to 1.92 crore. The growth was powered by international passenger traffic as it grew 22.6% while domestic passenger traffic rose by 3.5%. In Hyderabad airport, passenger traffic grew by 13.5% from the previous year to 65 lakh. International traffic soared 17.4% while domestic traffic went up12.7%. 

Jefferies maintained their "buy" call on the scrip with a target price of ₹100. The brokerage said the company ended the financial year on a strong note as EBITDA in the fourth quarter grew 2.8 times from the previous year. The EBITDA for FY24 grew 70%, driven by a 19% growth in passengers. Higher aero tariff at Hyderabad airport also helped the EBITDA growth. 

In a note on May 26 before the results, Jefferies initiated coverage on GMR Airports with "buy" call, stating the company is going to benefit from strong air traffic growth outlook, travel retail opportunity, upward reset in aero tariffs and real estate unlocking opportunity. The brokerage expects the company to become profitable by FY26. 

Price Action: Shares of GMR Airports Infrastructure were flat at ₹87.05 in the morning session. 

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