|GMR Infrastructure's standalone net loss widened to Rs 2,478.7 crore for the quarter ended March 2017, mainly due to change in accounting norms.|
"This loss what you are seeing is more of accounting entry or accounting adjustment," GMR Group CFO Madhu Terdal told.
The company had posted a standalone net loss of Rs 1,787 crore in the corresponding quarter a year ago. Its standalone total revenue declined to Rs 272.47 crore as compared to Rs 395.25 crore in the year-ago period.
When asked whether the widening of losses was also due to fall in total revenue, he said, "Ind AS (Indian Accounting Standards) effect has made a lot of difference in the way we consider the revenues." Gross debt reduced to Rs 19,856 crore from Rs 37,480 crore, which reflects GMR's turnaround efforts and improvement of financial health of the group, it said.
"With significant reduction of gross and net debt and the improvement of debt-to-EBITDA improving more than 100%, GMR has substantially brought down its leverage," it said. There has been "significant improvement in EBITDA - an increase of 12% to Rs 3,497 crore for FY2016-17 from Rs 3,114 crore for FY2015-16 following a robust improvement in performance of airports and energy verticals," it said.
It further said that lenders of the Chhattisgarh power project, which was commissioned last year, have adopted Strategic Debt restructuring scheme (SDR). Accordingly, the loan of Rs 2,992 crore was converted into equity by which consortium lenders own 52% of equity of the project.
Similarly, lenders of gas based Rajahmundry project adopted SDR earlier in the year and loan of Rs 1,414 crore was converted into 55% equity of the project. GMR-led consortium has been issued a letter of award for construction of 221-km long Eastern Dedicated Freight Corridor railway project at a cost of Rs 2,281 crore on EPC basis.
With the award company's EPC Order book is Rs 7,100 crore. GMR Group is a leading global infrastructure conglomerate with interests in airport, energy, transportation and urban infrastructure.
The group has 15 power generation projects of which 10 are operational and five are under development and construction stages. Besides, it has seven operating road assets and a double rail track line between Mughalsarai-New Bhaupur (Kanpur) of Eastern Dedicated Freight Corridor is under development.