GMR Good Buy at Every Decline

The net revenue of the company was up by a healthy 79.28% at Rs.959.15 crore. This surge in the topline was mainly on account of the induction of revenues from Hyderabad Airport and Istanbul Airport and also due to the increased power sector revenues.
Looking ahead, the Delhi International Airport Private Ltd. (DIAL),despite overall passenger traffic declining by 8% for the quarter, the outlook remains good. New domestic terminal is getting ready for launch by March, 09. The construction of the new integrated terminal (T3) is progressing as per schedule and 53% of the work has been completed as on date.
45% construction work on the Sabiha Gokcen International Airport (SGIA), Turkey has been completed commercial operation is scheduled by end October 2009. The construction of the new 3 storied car park facility has been completed and will be commissioned for operations from April 2009.
In its power segment, the Chennai plant has achieved a Plant Load Factor of 80.02%. GMR Energy restarted its generation as a merchant plant with effect from November 4, 2008 and is supplying power on a ‘Round-the-clock’ basis to Bangalore Electricity Supply Company Limited (BESCOM), through GMR Energy Trading Limited. The Vemagiri Power Generation Limited (VPGL) resumed operations from December 2008 based on diverted gas as per direction of Ministry of Petrol & Natural Gas, Government of India.
Highway projects, GMR Ambala-Chandigarh Expressways Private Limited (GACEPL), started commercial operations from December 10, 2008. The company has been shortlisted for submission of price bid for Hyderabad - Vijayawada (182km) for which price bid will be submitted in February, 2009. The other three road projects under construction, comprising of one annuity and two toll projects will be operational in the coming months before March 09.
There has also been concern over the company having Price Waterhouse as its auditors but the company has decided to continue with the services of Price Waterhouse and said any decision on replacing the external auditor would be taken only in the next financial year. GMR has six independent directors on its board.

GMR Infra remains a sound company. In the spate of the selling of all “Andhra” companies in the wake of the Satyam scam, GMR too faced a sell off. But this is just a temporary phase. Continue to maintain investment option on GMR and recommend it as a good buy at every decline. thanks