Airport operator GMR Airports Infrastructure is actively pursuing inorganic alternatives abroad, particularly within the Center East, South Asia, the Philippines, and Jakarta, whereas inside India, it’s out there brownfield alternatives.
The corporate is solely in airports with the capability to deal with over 5 million passengers, the administration stated at a latest analyst convention of Kotak Institutional Equities, “Chasing Progress 2024.”
GMR Airports Infrastructure operates 5 airports, three in India, together with Delhi, and two abroad. Within the first 9 months of FY24, its airports dealt with round 100 million passengers, up 22 per cent on 12 months. A lot of the passenger visitors is contributed by Delhi, the busiest airport within the nation.
Rajiv Jain-led funding agency GQG Associate holds practically 5 per cent stake within the firm, and Jain, in a latest interview with a tv channel, stated that he was bullish on the inventory as he anticipated Delhi airport alone to have a valuation of over $10 billion.
The inventory has greater than doubled over the past one 12 months.
Abroad alternatives
Whereas talking to analysts on the convention, the corporate officers made it clear that it was not seeking to purchase airport belongings aggressively however solely those who might probably enhance the worldwide passenger combine.
The gateway airport alternatives it’s eyeing are in these nations and areas the place a sturdy regulatory framework is already in place for ease of enterprise. It might additionally look to tie up with an area companion aware of the native laws and may facilitate the method, whereas GMR could be targeted on working the airport operations.
The 2 abroad airports in GMR’s portfolio are in Indonesia and the Philippines, and each have proven a formidable surge in passenger motion in FY24 up to now, particularly the one in Cebu that noticed a 54 per cent rise.
Home alternatives
There are restricted alternatives for greenfield airports in India, however the firm is brownfield initiatives and plans to take part within the numerous airport privatization alternatives within the nation. Nonetheless, it might solely pursue these that may deal with over 5 million passengers yearly.
The corporate has had success within the airports it acquired, as evidenced by the Goa airport that turned EBITDA constructive in simply three quarters. It is usually increasing its capability to eight million passengers from 4.4 million , which will be additional boosted to 33 million over a 55-year concession interval. The airport has already began dealing with worldwide operations, and contemplating the profile of vacationers visiting Goa, the spend per passenger is on par with Delhi.
Final 12 months, it consolidated its maintain on Hyderabad Worldwide Airport, shopping for 11 per cent extra from Malaysia Airports Holding to take its stake to 74 per cent.
