NEW DELHI: GMR Infrastructure Ltd (GIL) on Wednesday said its businesses are on a recovery path, and the firm is focussing on cash conservation by rescheduling its capex plan to mitigate challenges.
It has also extended the Delhi airport plan to June 2023, instead of the scheduled September 2022, the company said.
The firm on Tuesday reported widening of its consolidated net loss to Rs 750 crore during the quarter ended September 30, 2020.
GMR is continuously adapting to the situation and has focused on several measures to mitigate the challenges including cash conservation through rescheduling of its capital expenditure (capex) plan, the company said in a statement.
It added, "Delhi airport's original plan was September 2022; now targeting to complete by June 2023, though we have taken approval up to September 2023."
For the Hyderabad airport, the original plan was March 2022, which is now being planned to complete before December 2022, the company said.
Besides, Goa airport capex plan has been revised from May 2022 to August 2022, it said.
It said it is also focussing on consolidation of infrastructures to adapt to the nature of traffic and reduce operating costs and has reviewed all budgets with focus on only essential expenditures, resulting in reducing operating expenses.
About the divestment of Kakinada SEZ Ltd (KSEZ), it said that with an obective to reduce the corporate debt further, GIL has signed definitive agreements for the sale of its entire 51 per cent stake in KSEZ to Aurobindo Realty and Infrastructure Pvt Ltd.
As part of this, the 100 per cent equity stake of Kakinada Gateway Port Ltd held by KSEZ would also be transferred to Aurobindo Realty.
Total consideration for the sale of equity stake as well as the sub-debt in KSEZ is Rs 2,610 crore.
Out of this, Rs 1,600 crore would be received on the closing date and the balance Rs 1,010 crore would be received in the next 2-3 years contingent upon certain agreed milestones, the company said.
It also added that it expects bourses' nod on the strategic restructuring scheme for demerger of its non-airport vertical business by December.
The rejig aimed at simplifying corporate holding structure involves demerger of the non-airport business of GIL into GMR Power and Urban Infra Ltd (GPUIL) alongside amalgamation of GMR Power Infra Ltd (GPIL) with GIL, as a step preceding demerger.
"We have filed the composite Scheme of Amalgamation and Arrangement among GPIL and GIL and GPUIL and their respective shareholders with the stock exchanges," the company said.
The company expects feedback from the stock exchanges by the end of December, after which the company shall file the requisite petition with the National Company Law Tribunal, it added.
This restructuring is a step in right direction to unlock value of GIL through separate listing of both the airport business and non-airport business and simplifying the corporate holding structure, the company said.
Claiming that businesses are on a strong path to recovery, GIL said airports have witnessed an increase in traffic after May 25, when restrictions were eased.
It said it is focusing on managing working capital in an efficient manner and said Kamalanga power plant received 50 per cent of the regulatory receivables (Rs 283 crore) from Haryana discom and the balance would be paid after disposal of the case by the Supreme Court.
About highways, it said Hyderabad-Vijayawada and Ambala-Chandigarh expressways have reached 93 per cent and 90 per cent traffic, respectively, as compared to pre-COVID-19 levels in October 2020.
It also said restrictions imposed on account of COVID-19 have impacted the quarterly results.