Latest news with #GMR
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Business Standard
4 hours ago
- Business
- Business Standard
GMR Airports plans record $579 mn rupee-bond sale to refinance debt
The New Delhi-based company is considering to raise the funds through a note due in 18-months to three years and will use the proceeds to refinance existing debt Bloomberg By Divya Patil and Saikat Das GMR Airports Ltd. is considering a ₹5,000 crore ($579 million) local-currency bond sale, according to people familiar with the matter, in what could be a record rupee issuance for India's second-largest private airport operator. The New Delhi-based company is considering to raise the funds through a note due in 18-months to three years and will use the proceeds to refinance existing debt, one of the people said, asking not to be identified as the details are private. The firm may aim to price the securities at about 10.5 per cent, the person said. The Economic Times earlier reported the company is looking to raise ₹5,700 crore. The company is planning to tap the market as a cumulative 100-basis-point reduction by the central bank this year brings down borrowing costs. The fundraising underscores growth prospects for India's aviation sector and comes at a time when GMR is looking to expand its footprint in the country. GMR, along with the country's largest airport operator Adani Airport Holdings Ltd., is expected to be among the top contenders as the government looks to privatize 11 airports. If the deal goes through, it will be GMR's largest-ever rupee offering, according to data compiled by Bloomberg. It has three local-currency bonds amounting to ₹5,000 crore maturing next year. Care Ratings last month upgraded GMR Airports' loans and bonds to A from BBB+ and expects the firm's business to be supported by favorable outlook for the airport sector. GMR's unit Delhi International Airport Ltd. is also planning to issue ₹1,000 crore worth of bonds, according to people familiar with the matter.
Time of India
3 days ago
- Time of India
Phuket-bound Air India Express flight returns to Hyderabad after takeoff
Representational Image HYDERABAD: An Air India Express flight bound for Phuket, Thailand, returned to the Hyderabad airport less than half an hour after take-off due to a technical snag. The aircraft was carrying more than 100 people, including passengers and the crew. The Boeing aircraft, operating as IX 110, had already experienced a 20-minute delay at the airport. Originally scheduled for a 6.20am departure, the flight took off at 6.40am but returned by 6.57am. The aircraft had reached an altitude between 5,000 and 10,000 feet when crew identified the snag. GMR authorities told TOI that Air India arranged for an alternative flight for passengers which reached Phuket at 11.45am. Exactly a month ago, a Tirupati-bound Spicejet flight from Hyderabad had faced a similar situation.
Business Standard
6 days ago
- Business
- Business Standard
GMR Airports gains as passenger traffic climbs 3% YoY in Q1 FY26
GMR Airports Infrastructure rose 1.52% to Rs 95.27 after the company reported a 3.3% year-on-year (YoY) increase in passenger traffic across all GMR airports, reaching over 30.1 million passengers in Q1 FY26. Domestic passenger traffic grew 2.9% YoY, while international traffic saw a sharper rise of 4.6% YoY during the quarter. Delhi Airport handled around 19 million passengers in the quarter, down 1.2% YoY, while Hyderabad Airport handled around 8 million passengers, up 17.1% YoY. Aircraft movements also increased by 5.6% YoY in Q1 FY26, totaling 190,002 movements. In June 2025, GMR Airports handled 9.7 million passengers, up 0.9% YoY, while aircraft movements rose 2.6% YoY to 61,251. GMR Airports Infrastructure is mainly engaged in the development, maintenance, and operation of airports; generation of power; coal mining and exploration activities; development of highways; and development, maintenance, and operation of special economic zones. The companys consolidated net loss widened to Rs 252.66 crore in Q4 FY25 as against a net loss of Rs 167.58 crore reported in Q4 FY24. Revenue from operations jumped 17.02% year on year (YoY) to Rs 2,863.34 crore in the quarter ended 31 March 2025.
The Hindu
6 days ago
- Automotive
- The Hindu
Midnight makeovers and million-dollar coats: inside Hyderabad's hub of aviation artistry
When the AirAsia aircraft emblazoned with superstar Rajinikanth's face took flight as part of the 'Kabali' movie promotion back in 2016, it wasn't crafted in a film studio but painted by hand at Hyderabad's Rajiv Gandhi International Airport. The same team gave FlyBeond's aircraft its sleek metallic look, layering copper-toned paint infused with gold-dust mica — a livery that shimmered like no other. Tucked away in a hangar on the edge of the airport, GMR Aero Technic is doing more than just routine maintenance. It's redefining what aircraft transformation looks like, one flawless coat at a time. 'Aircraft painting is not like painting cars or hoardings; here there is no room for error,' says Mohammed Sadiq (name changed), a painter at the facility. 'Every coat, from the base to the clear finish, must be applied with precision because it affects the aircraft's aerodynamics and fuel efficiency. We were trained in everything, from handling paint guns and surface prep to how to safely move on top of the aircraft. It is a critical job that requires both skill and focus,' he adds. Nine aircraft, in various states of transformation, sit beneath high bay lights, some stripped to their bare metal, and others mid-way through a makeover. This is not just mechanical upkeep, this is where global airlines send their jets to be reimagined structurally, visually and functionally. It is a facility that has turned Hyderabad into a serious contender on the global aviation map. A canvas of innovation 'This highly regulated process blends aerodynamics, weight optimisation and visual branding. Every coat matters. Too thick and it adds weight; too rough and it impacts drag. Both affect fuel efficiency and emissions,' explains Ashok Gopinath, president and accountable manager of GMR Aero Technic. Each livery painting takes between seven and 11 days, with over half that time spent on surface preparation. GMR employs around 30 skilled professionals per aircraft paint job, each trained not just in technical standards but in visual artistry. Many come from commercial painting backgrounds, automobiles, hoardings and even signages, and are put through a 6-8 month customised aviation painting programme, including training from global paint manufacturers like PPG, Mankiewicz and AkzoNobel. Painting is typically done between midnight and 6 a.m., when ambient temperatures are optimal and the facility is quieter. Hyderabad's moderate weather gives it an edge over cities like Delhi, where extreme summer or winter temperatures can delay paint cycles. A full repaint typically costs around $200,000 to $250,000, depending on the complexity, materials and branding requirements. 'Each aircraft that leaves early because we save a day on painting saves the airline about $30,000. Our hangar is fully booked till mid-2026,' Mr Gpoinath adds. Unlike stickers or placards that can peel off mid-air, GMR hand-paints intricate liveries, including the now-iconic Air India Express tails, each representing a different Indian art form. 'Each tail is unique. The challenge is to maintain consistency in quality and colour across a 100-foot aircraft surface, often under tight timelines,' he explains. 'Most of our work happens at night when temperatures are stable. We wear full safety gear and make sure all tools are grounded, even static electricity can be dangerous in this job. Painting a plane is a team effort. The aircraft is divided section by section and each painter knows their part, whether it is the tail, body or wings. We take a few steps back, check every curve and joint carefully, and make sure the finish is perfect before we move on,' says Ajit Kumar (name changed), another painter on the team. Maintenance hub to MRO powerhouse Founded in 2011, GMR Aero Technic began by focusing on airframe maintenance, the largest and most infrastructure-heavy vertical within the MRO (Maintenance, Repair, and Overhaul) ecosystem. Today, it is India's largest independent MRO and a full-service provider offering everything from end-of-lease checks and C-checks to cabin upgrades and aircraft modifications. With 9+1 operational lines, the facility can handle up to 10 aircraft simultaneously. Roughly 70% of its business comes from international clients, including Kuwait's Jazeera Airways, FlyDubai and Southeast Asian carriers. Domestic clients include IndiGo, Air India Express and SpiceJet. What gives GMR an edge is its extensive regulatory clearances, not just from India's Directorate General of Civil Aviation (DGCA), but also from global aviation authorities like the European Union Aviation Safety Agency (EASA), the US Federal Aviation Administration, and over 30 other countries. This level of accreditation places it in competition with the likes of Turkish Technic (Istanbul), ST Engineering (Singapore) and Joramco (Jordan). Ecosystem the Singapore way GMR's ambition is not just limited to airframe work or paint. It envisions Hyderabad as South Asia's one-stop MRO ecosystem, akin to Singapore's world-class aerospace hub. To this end, the company has tied up with global players like Spirit AeroSystems (for engine nacelle repairs), Safran (for DSL booths) and Liebherr (for heat exchangers). It has also launched an aviation academy offering DGCA and EASA-approved training programmes, grooming the next generation of MRO professionals. A future in wide bodies The next major leap is already on the drawing board: by 2027, GMR plans to add a wide-body aircraft paint hangar, which will allow it to handle long-haul jets like the Boeing 777 aircraft that Indian airlines like Air India currently send abroad, often to the US, for painting. 'That work will be done here in Hyderabad,' says As the aviation world grows, the demand for precision maintenance and visual branding is skyrocketing. The next time a plane takes to the skies gleaming with a new coat, chances are that the shimmer was born in a quiet hangar in Hyderabad.
Mint
14-07-2025
- Business
- Mint
Three companies where standalone numbers shine, but subsidiaries tell a different story
Most bluechip companies are conglomerates, with subsidiaries spanning multiple industries and geographies. With diversification achieved through legally segregated subsidiaries, business groups hope to play multiple angles to amplify growth, while not remaining vulnerable to any single market segment. But this does not always play out as expected. At times, the subsidiaries never come into their own. With persistent losses, they can bleed out the parent company's financial might. In such cases, the standalone financials may look healthy or even impressive. But a look at the consolidated financials paints a sad picture. In this article, we shall examine three cases in which struggling subsidiaries have been deadweights for their parents. GMR Infra – Demerger unlocked investor value The GMR group is engaged in a wide range of businesses from airports and energy to transportation and urban infrastructure. But problems had plagued the group across companies. While its power business struggled under low utilizations leading to low operating leverage and shrunk margins, regulatory uncertainty affected the financial viability of some of its airports. The overall group was faced with delayed projects and mounting debt, leading to interest costs which ate away at profitability. To solve this, the group divested non-core assets, raised funds, and pared down debt. As part of the process, it had to bring in strategic investors. Since such investors tend to look for pureplay businesses, the GMR group was demerged—its airport projects were split up into a separate company, GMR Airports Ltd, while the remaining businesses were renamed GMR Power and Urban Infra Ltd. This 'de-consolidation" of unrelated businesses allowed pulling in a strategic investor for its airports business–France-based Aéroports de Paris (Groupe ADP). It also enabled the management to streamline focus on the businesses and unlocked investor value. In FY25, GMR Airports reported more than Rs10,000 crore in revenues, but continued to pile on losses. On the other hand, GMR Power and Infra Ltd. reported ₹1,400 crore in profits on a topline of about ₹6,000 crore. GMR Power and Infra Ltd has almost quadrupled investor wealth since FY23 with a CAGR of 47%, while GMR Airport has lagged behind with a CAGR of less than 30% during the period. Also Read: Mystery of the microcap multibagger: How will Cupid Breweries manage a ₹1,800 crore expansion with negligible sales? Andhra Sugars – Jocil drags down profitability Established in 1974, Andhra Sugars had started as a sugar manufacturer. Over the years, it has diversified into multiple businesses, including chlor-alkali products, industrial chemicals, soaps, and power generation. Sugar now contributes just about 6% to the company's revenues, with 40% coming from industrial chemicals, and 33% from chlor-alkali products. Despite a diversified business profile and a healthy balance sheet, the company has been posting quarter after quarter of underwhelming results. Weak demand and lower realisations have resulted in underutilization of capacity and unfavourable operating leverage, putting the company's margins under pressure. Matters have been made worse by its subsidiary, Jocil Ltd. Jocil manufactures fatty acids, stearic acid, refined glycerin, soap noodles, and toilet soap among other similar products. It is also engaged in manufacturing industrial oxygen, and biomass and wind-based power-generation. In FY25, the subsidiary contributed ₹870 crore in operating income towards Andhra Sugars' consolidated revenue of ₹2,020 crore. But Jocil's margin profile leaves nothing on the table for investors. With 50% of its revenues coming from a single customer, the company has almost no pricing power. Coupled with rising raw-material prices, which could not be passed through to customers amid intense competition, its net profit margin stood at a paltry 0.12% in FY25. Over the near term, the moderation in crude prices, which constitute more than 80% of soap revenues, is expected to offer some relief. However, the lack of pricing power at a significantly sized subsidiary that is vulnerable to crude-price fluctuations can continue to intermittently drag down the consolidated margins for Andhra Sugars. Tata Power – The Mundra matter, and more Tata Power is India's leading player in power generation, transmission, and distribution. It is also investing towards expanding renewable energy capacity. Long-term power-purchase agreements (PPAs) drive most of its power production, ensuring extended revenue-visibility. It is backward integrated as well, with long-term fuel supply agreements in place with domestic and international coal miners. Of course, complications arise in the management of receivables from state discoms. But the issue has been kept under control with the implementation of late-payment surcharge rules. The standalone business' operating efficiencies and cash-flow management are robust. The problem posed by its subsidiaries, however, is an entirely different ball game. The company's Mundra power plant has been a drag since its commencement in March 2013 under Coastal Gujarat Power Ltd (CGPL). Problems started due to changes in Indonesia's mining regulations which pushed up the cost of coal imported by CGPL. This had made existing PPAs signed by CGPL unviable. Result? Consolidated margins have been significantly impacted over the years. In 2023, under section 11 of the Electricity Act, Tata Power was allowed to pass through the higher costs of coal (after adjusting the profits made by its coal-mining business). This, along with moderating coal prices, have helped improve the financials of CGPL. Losses have reduced, but profitability is still some way away. And so is a sustainable long-term solution. And now, another subsidiary is making investors anxious – Tata Power Renewable Energy Ltd. Debt-funded renewable capacity expansion from 4.5 GW to 5.5 GW has worsened Tata Power's debt to Ebitda from 3.5 in FY24 to 3.65 in FY25. Of course, debt coverage has improved on the back of improving profitability. But another 5.4 GW of renewable capacity is under development, and the company plans to add roughly ₹20,000 of debt this fiscal. Execution challenges and price fluctuations could also further stress Tata Power's consolidated financials. For more such analyses, read Profit Pulse Rounding it up It won't be fair to expect a subsidiary to start contributing positively from day one. Initially, it may post losses and require direct or indirect financial support from its parent. But if a subsidiary persistently drags down the consolidated performance, it is better to cut losses and lose the dead weight. In fact, it may so happen that the dissociation is crucial for even the subsidiary's survival. This is what we saw in the case of GMR Infra, where the demerger of its airports business was pivotal to pull in a strategic partner. This may be easier said than done, however. A parent and its subsidiaries are often linked in ways which go beyond shareholding. For example, Jocil Ltd. has been receiving investment-grade credit-ratings, thanks primarily to Andhra Sugars' backing. And with CGPL, had it not been for Tata Power's financial support, persistent losses would have taken down the Mundra plant years back. That said, subsidiaries can cut the other way around as well. Consider for instance, companies like Essar Port where the parent's revenues and profits are barely a fraction of the consolidated financials. This is to say that subsidiaries are not red flags by rule. But when it comes to diversified conglomerates, it is important to consider the consolidated financials and apply the appropriate holding company discount before making investment decisions. Ananya Roy is the founder of Credibull Capital, a SEBI-registered investment adviser. Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
