GMR AIRPORTS LIMITED analyst Q&A

Thank you. Ladies and gentlemen, we will now begin with the question and answer session. The first question is from the line of Parvez from Niveshaay Investment Advisory. Please go ahead.

Hi, Sir. Congrats on a good set of numbers. For Delhi international airport we can see some good figures on duty free stores so what is the outlook for the H2, usually H2 is more stronger so can we see some good figures coming in there?

Yes, you are right. So generally, the second half of the year where you have the tourist season plus the other seasonal traffic plus the festival. So, you generally tend to see better numbers in the second- half of the year.

On this Delhi international airport, other operating revenue what do they consist of?

Other income you are talking about it basically?

Delhi airport so if you see H1 FY2024 figures in that you have shown other revenues of 103 Crores so if we can get a breakup of that figure?

About Rs.16 Crores is interest on bank deposit and Rs.74 Crores is about dividend income. DIAL has received about 75 Crores as dividend income - basically from DDFS about 55 Crores that is a duty free - and DAPSL and Celibi, all together we have received about Rs.75 Crores dividend and other small, small income all put together was Rs.103 Crores is the income.

What is the EBITDA outlook that we see for this year?

We do not give guidance on EBITDA or revenues. We basically generally give guidance as to what will be the growth in traffic that is what we do. We leave it to the analysts to assume the numbers and derive their own assumptions there.

Just one last question if I can squeeze in. This yield per passenger on non-aeronautical revenue, any guidance on that?

No guidance on that but as we have always articulated, we see increasing trend of consumption at the airport and that is the secular trend that we have. We have experienc ed that in the past. There sometimes could be some blips because of mix of passenger change at various airports, but the general trend line is that the spend per passenger and yield per passenger is only going to go up.

Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.

Thank you for the opportunity. First question is what are steps left for the merger of the GMR Airports Limited with listed entity and one clarifica tion, has the FCCB been issued, and the money raised from the group ADP or is it to post the merger?

So Mohit the FCCB was issued actually end of March itself. If you look at our balance sheet of March 2023 the FCCB was already subscribed b y ADP, it got reflected in our accounts and our net debt subsequently came down. So that is already on the books, and it is part of our capital structure. With respect to the merger as I highlighted in my opening remarks we are expecting the shareholder approval to happen on December 2, 2023 or December 3, 2023 and post the shareholder approval then there is a second motion that has to be undertaken it is more of a court driven process and that will be undertaken so maybe in 30 to 60 days’ time post the shareholder meeting approval this should all crystallize. We cannot predict exactly when the court will call for these or how their process runs, but these are expected timelines and that is why I had guided that the merger will get completed most likely in the FY2024 itself.

Understood Sir. My second question is on the TDSAT order I think which we received quite a time back. What is the timeline for appealing against the order, any development which you think you can share with us?

TDSAT as of today I think that no one has appealed, but we understand that somebody is fil ing an appeal, but as of today no appeal has been filed.

My last question is so can you please help us with how much of the capex has been capitalized during the H1. It looks like your PPE has gone up by 5000 Crores compared to March 2023 and we can see the impact on the interest cost and the depreciation but however, I see that the full commissioning of the asset is still pending?

I think that the capitalization in case of Delhi as of today is - about 6500 Crores has been capitalized, balance will get capitalized during current quarter and the next quarter and everything will be done by end of March 2024, same is the case of Hyderabad - more than 3800 Crores has been capitalized and balance will be capitalized in the third and fourth quarter, so both are expect ed to complete the entire expansion by January 2024.

Sir my last question, you are looking to acquire the Malaysian Airport holding stake of 11% at USD 100 million how are you looking to fund this particular acquisition?

As you know that we have debt raising capacity as GAL and at this stage we will be raising medium term debt at GAL to fund for the acquisition of the Malaysian airport stake.

Thank you. The next question is from the line of Shivang Chauhan from Barclays. Please go ahead.

I just want to know the capex numbers for Delhi and Hyderabad airports I think it was just covered and I missed it, and my second question would be on the other operating revenue, I think that also I missed it?

The capitalization I have already explained about 6500 Crores we have done in DIAL till September and the balance capitalization is expected to be completed by January 2024. The total asset capitalization will be around 11500 Crores. In case of Hyderabad, we have already completed 3800 Crores because part by part we are capitalizing as a nd when the asset is put to use . We expect to capitalize full amount of 6800 Crores by January 2024 in case of Hyderabad.

This was clear and on the operating revenue break up could you give.

The other operating revenue mainly includes CPD income which is coming from development.

That was 74 Crores, right?

Yes.

Alright. Thank you so much.

As there are no further questions. I now have the conference over to Mr. Saurabh Chawla for his closing comments.

Thank you. This was a very short call, which means that I think our disclosures are pretty good and transparent and our business model is now much better understood by the analysts. So, thank you everybody for this call and again my best wishes on this festive season. We are however available offline, should you have any further questions that may come to your mind, you can reach out to the IR team, and they will revert expeditiously. Thank you so much.

Thank you, members of the management team . Ladies and gentlemen on behalf of GMR Airports Infrastructure Limited that concludes this conference call. We thank you for joining us. You may now disconnect your lines.

Transcript has been edited to improve readability.