CHAPTER 1

GMR Hyderabad International Airport Limited

1.Company Overview

1.1HISTORY

The Rajiv Gandhi International airport at Hyderabad, inaugurated by the UPA

Chairperson, Smt. Sonia Gandhi on 14th March, 2008, commenced operations from

0001 hrs on Sunday, 23rd March, 2008. The new airport was opened to the public,

pursuant to the notification issued by the Ministry of Civil Aviation to launch operations.

On 23rd March, 2008, a Lufthansa flight carrying 222 passengers became the first

commercial flight to touch down at the new Greenfield International airport.

With the new Greenfield airport starting full-scale operations, the existing airport at

Begumpet has been closed for civil aviation operations. The International Air Transport

Association Code ‘HYD’ has also been transferred to the new airport.

The new Rajiv Gandhi airport has been developed by GMR Hyderabad International

Airport Limited (GHIAL), a joint venture company promoted by GMR Group (63%) and

Malaysia Airports Holding Berhad (11%), Government of Andhra Pradesh (13%) and

Airports Authority of India (13%) as the other consortium partners. GHIAL had won the

bid to develop and operate the Greenfield international airport at Shamshabad through

an international competitive bidding process conducted by the Government of Andhra

Pradesh and the Government of India. The new airport has also obtained the following

clearances -:

Aerodrome Licence and Clearance for Operations of Fire Fighting Systems from

the Director General of Civil Aviation (DGCA)

Environmental Clearance granting consent for operations from the Andhra

Pradesh Pollution Control Board (APPCB)

Clearance for the airport as a notified Customs zone.

The launch of the new Greenfield airport signifies the successful culmination of the

Airport’s Operations, Readiness and Trial (ORAT) runs that have been underway for

more than 18 months, from the date of commercial operations. GHIAL had engaged the

services of Munich Airport International, for the ‘cut over’ or transition of airport

operations from the existing to the new airport. GHIAL'S mandate besides building and

financing the airport also includes operating and maintaining the airport with service

standard levels and infrastructure at par with any global benchmark, thereby enhancing

the shareholders’ value. Build through the Public-Private Partnership initiative, the

developers of the futuristic airport seek to establish Hyderabad on the global map and

thereby contribute to the prosperity and overall development of the region.

The airport is strategically located providing excellent opportunity to develop it as a hub

for domestic and international passenger and cargo traffic. The futuristic airport reflects

the long term vision of its developers to build it as a major domestic and international

hub.

Hyderabad is centrally located and within a two hour flying time to all the major cities in

India and 4 hours from major cities in the Middle East and South East Asia. The city has

the potential not only to become one of the main hubs in India while also handling traffic

between the East & West. The proliferation of IT companies has earned Hyderabad the

reputation as India’s second Silicon Valley. The city is also a major centre for bio-

technology and pharmaceutical companies. Among the MNC'S who have a presence in

Hyderabad include: Microsoft, Oracle, GE, IBM, Deloitte, HSBC, Baan and Indian

corporates like TCS, Infosys, Wipro and Satyam.

.Hyderabad has a population of over 7 million inhabitants and a catchment area

extending to 75 million people living within a couple of hours of the city. Currently there

are 16 international airlines and 11 domestic airlines operating from Hyderabad flying to

over 35 destinations.

1.2 BUSINESS OVERVIEW

Corporate Social Responsibility (CSR) is the continuing commitment by business to

behave ethically and contribute to economic development while improving the quality of

life of the workforce and their families as well as of the local community and society at

large". This holistic approach to business regards organizations as being full partners in

their communities, rather than seeing them more narrowly as being primarily in business

to make profits and serve the needs of their shareholders.

CSR, as a notion, has been in India from times immemorial through the concept of

“daana”, an act of giving a voluntary contribution for a greater good. CSR means that

companies have obligation not just to their investors but also to the society and

environment.

CSR is a social investment as opposed to philanthropy. It is important to distinguish

CSR from charitable donations and “good works” (i.e., philanthropy, e.g., habitat for

humanity). Corporations have often, in the past, spent money on community projects,

the endowment of scholarships, and the establishment of foundations. They have also

often encouraged their employees to volunteer to take part in community work and

thereby create goodwill in the community, which will directly enhance the reputation of

the company and strengthen its brand. CSR goes beyond charity and requires that a

responsible company take into full account its impact on all stakeholders and on the

socity / environment when making decisions. This requires the company to balance the

needs of all stakeholders with its need to make a profit and reward shareholders

adequately.

Like all business initiatives, CSR requires thorough research, a detailed and proactive

plan, regular management monitoring, constant interaction and feedback from the

audience for whom the programme is run. In short, a commitment deeper than just lip

service. The key factors here are sustainability, continuity and constant monitoring and

reporting.

Ever since the aviation sector opened up the skies to private carriers, air

passenger travel in India has been expanding at about 25% a year. According to

government estimates, growth in this sector will outpace the global average until 2025.

The year 2007 was the best ever in terms of growth for India's civil aviation sector. The

domestic airlines passenger load increased by 36.47 % (to 317.29 lakh passengers) in

the first three quarters of 2007.

According to the International Air Transport Association (IATA), by its latest estimates,

India will contribute significantly to global air travel, which is set to grow from

US$ 5.1 billion to US$ 5.6 billion this year. Market research firm PhoCus says that

domestic air traffic is likely to more than double and touch 86.1 million passengers by

2010, up from 32.2 million passengers in 2007.

Opportunities - Aviation essentially refers to all activities involving the operation of

aircrafts. While the common perception about the sector is that it’s only about pilots and

airhostesses, there are other equally significant job options that the industry cannot

function without. Some of the Operations jobs include: Pilots, airhostesses, air traffic

controller, cabin safety instructor, in-flight managers, In-flight base managers, cabin

services instructor, maintenance controllers, aircraft maintenance engineers, quality

control manager, cargo officers and ground staff.

 There is also a wide range of positions on the ground and these include the services of

mechanics, baggage handlers, ticket agents and reservations agents.

 

Salary - The remuneration for those in the aviation industry is on the higher side but this

is essentially for the flying jobs, which require special skills. Typically, pilots, are one of

the highest earners in the country, and junior pilots in a commercial airline can get paid

as much as Rs. 2.5 lakh to Rs. 3 lakh per month. Airhostesses also get a decent

package with starting salaries for freshers being in the range of 25,000 plus. There are

also standard benefits such as health insurance and retirement plans. One interesting

perk this sector offers is a quota of free tickets for the staff and family. The corporate

side of the airlines industry however is not that well paid and salary levels for a manager

could hover in the Rs.7 lakhs -Rs. 8 lakhs range.

 

Top Employers- Some of the top employers of the industry are Air India, Indian

Airlines, Jet Airways, Air Sahara, Paramount Airways, Go Air Airlines, Kingfisher

Airlines, Spice Jet, and Air Deccan.

 Future - Kapil Kaul, CEO India & Middle East, Centre for Asia Pacific Aviation (CAPA),

in an interview said, that India's civil aviation passenger growth is among the highest in

the world. “The sector is slated to cruise far ahead of other Asian giants like China or

even strong economies like France and Australia. The number of passengers who will

be airborne by 2020 is a whopping 400 million.”

 The markets being as it is holds great promise for potential investors and numerous

International no-frills budget carriers, are making a beeline for India. With so much

activity in the sector there is a tremendous need for personnel as well. While earlier, the

airline industry was largely government owned and perceived as regulated and also a

tad boring, with private and international players entering the market, opting for a career

in the airlines has become both a lucrative and glamorous option

GMR was originally incorporated on June 30th, 1986 in the name and style of Sree

Sarada Ferro Alloys Ltd., to set up a plant for the manufacture of Ferro Chrome at an

installed capacity of 6,000 TPA at Ravivalasa Village, Tekkali Mandal in Srikakulam

District of Andhra Pradesh. The name of the Company was subsequently changed to

GMR Vasavi Industries Ltd and a fresh Certificate of Incorporation was obtained on 1st

February 1994.

As the project could not be implemented by the original promoters viz., Sri P V

Lakshmana Rao, Sri K Srinivas Rao and associates, the present Directors comprising

Shri G Mallikarjuna Rao and Shri S Suryanarayana Murthy had taken over the

management in 1989 and implemented the said project.

GMR's existing Ferro Alloys operations registered a capacity utilisation of 71.12% in

1990-91 which subsequently increased to 89.73% in 1991-92 and around 88.20% in

1992-93. The company enhanced the manufacturing capacity from 6,000 TPA to 10926

TPA during 1993-94 nd achieved a capacity utilisation of 63.83% during 1993-94. The

capacity utilisation has been lower due to shut down of the Plant for a period of about 2

months on account on implementation of the expansion project and time taken for

stabilisation of production.

2000 - The Company has entered into tripartite agreement with NSDL and CDSL and

Karvy Consultants Ltd. (R&T agents) to make the equity shares of the company

available for dematerialisation.

2001 - The Board has resolved to hive-off the brewery division to GMR Beverage

Industries Ltd., Hyderabad, a group company, which is going to be a 100 per cent

subsidiary of the company.

2002-V Balasubramanian appointed as Company Secretary of GMR Technologies.

2003 - GMR Technologies & Industries Ltd has informed BSE about the following

changes in the composition of the Board of Directors of the company: 1. Mr K V K

Seshavataram has been elected as the Chairman of the Board of Directors of the

company 2. Mr O Bangaru Raju has resigned form the Board of Directors of the

company and the Board has accepted his resignation wef December 30, 2002.

-GMR Industries picks up Best Performer Award 2007

-GMR Industries Ltd has appointed Dr. V Raghunathan as the Managing Director of the

Company, with effect from January 25, 2007.

1.3 ORGANIZATIONAL STRUCTURE

Project Details

Location Hyderabad, India

Airport Opening Date

Commercial Operations Date: 23rd March, 2008

Principal EPC Contractors involved : Larsen & Toubro – Airside & Landside Works

China State Construction & Engineering (HK) - Passenger Terminal Building Works and

ATC power

Key Features : 12 million passengers per annum (mppa), A-380 compatible runway,

Modular Terminal Building with state-of-the-art IT technology, and a Business Hotel.

With the gross domestic product (GDP) rising by more than 9% yearly, India is one of

the world’s fastest growing economies. The booming manufacturing, services and

export industries mean that more Indians are travelling than ever before with passenger

numbers rising by double digits year-on-year.

Airport-Features

The new airport in the initial phase is capable of handling 12 mppa and more than

100,000 tonnes of cargo per annum. The ultimate capacity of the airport is over 40

mppa and 1 million tonnes of cargo per annum.

The single terminal building of the airport is equipped with 12 contact boarding bridges,

30 remote stands, 130 Common User Terminal Equipment (CUTE) check-in desks and

16 self check-in kiosks and 46 immigration counters. The airport also has the latest IT

systems and will also be introducing India’s first Airport Operational Database (AODB)

technology.

Design Principles

The basic design of the passenger terminal building is simple, attractive and loose-fit.

The fluid design is such that sequences of spaces are provided to facilitate easy and

comfortable movement and orientation. The passenger terminal building is spread over

100,000 sq. m, of floor space that would ensure rapid transit between its Domestic and

International concourses.

GHIAL with its user-friendly modular design of the passenger terminal will initially cover

over 100,000 sq. metre of floor space that would ensure rapid transit between its

Domestic and International concourses. The complex has a dedicated ‘Airport Village’

with a local flavour complete with shops for meeters and greeters.

A hotel complex named as the ‘Novotel Hyderabad Airport’ adjacent to the terminal

building, operated by the Accor Group of Hotels, will be operational by mid 2008. GHIAL

has also tied up with the following business partners to operate and manage various

facilities at the airport

:Menzies Aviation Plc. for development and operation of cargo facilities LSG Sky Chef &

Sky Gourmet for in-flight catering Reliance Industries to operate and maintain India's

first unique open access model in setting up a fuel farm inside the airport

Novotel, Accor Group to operate and maintain a business hotel with four star facilities to

host the transit and business passengers.Nuance - Shopper’s Stop consortium for the

development and maintenance of Duty Free and Retail facilities for domestic and

international passengers.

A UK- based consultant company, to design the blue-print of the retail layout. The

company will use its global expertise and experience in retail design and business

development, to shape the retail landscape around the airport.

Apollo Hospital for providing medical services at the Airport.

Tenaga Parking (India) Pvt. Ltd, for the management of the Car Parking facility at the

airport.

Plaza Premium Lounge, to manage lounges in the airport.Menzies and Bobba & SATS -

ground handling for international airlines.

Laqshya Media Pvt Ltd. for managing advertisement rightsSabena Flight Academy to

setup an International Aviation Academy.Landmark and Odyssey to opened and

operate bookstore. Tata Teleservices to provide Fixed Line (V&D) Services

HMS Host to operate and maintain Food & Beverage outlets at the airport

Connectivity to the Airport

GHIAL is closely involved in supporting the Government of Andhra Pradesh Government's efforts to

improve and enhance connectivity to the airport.

The major access points to the new airport are from National Highway NH-7 (on its West) and Srisailam

State Highway (on its East) besides the proposed Outer Ring Road (ORR). Also, a first of its kind, 11.6 km

long elevated expressway is under progress to help passengers reach from the city centre to the

expanded six lanes NH-7 road, arriving at the new airport within 30 minutes. Besides, a Multi-Modal

Transportation System (MMTS), a Mono Rail Transport System (MRTS) and other alternative modes of

transport are being planned in collaboration with the State government.

1.4 MAJOR MERGERS & ACQUISITIONS

GMR to pay Rs 620 cr for 50% in SA coal firm

GMR Infrastructure, which is into development of airports, power projects and roads,

through its wholly-owned subsidiary GMR Energy on Thursday said that it has picked up 5

per cent stake for Rs 60 crore ($15 million) in Homeland Mining & Energy in South Africa.

Homeland Mining is a subsidiary of Homeland Energy Group of Canada.

GMR Infrastructure has further added that they have an option to acquire an additional 45

per cent of this South African firm by September 2008 and the total payout for the 50 per

cent stake is $155 million (about Rs 620 crore).

GMR Energy is in the process of executing two coal fired power plants with a total

generation capacity of 3150 mega watt (MW) in Orissa and Chattisgarh. The Orissa

project will have two stations generating 1050 MW each and is expected to generate

power from 2012.

The Chattisgarh project of 1050 MW is likely to start generation at a much later stage as

the memoranda of understanding (MoUs) have recently been signed.

GMR Energy currently has three power plants operational generating 800 mw, none of

which are on coal. In addition to the two thermal projects, GMR Energy is tying up with

four more projects across India.

 

According to a statement from GMR Infrastructure, Homeland Mining holds licence for

several coal mining projects in South Africa.

 

“This acquisition would ensure fuel security for GMR Group’s power projects in India and

such a transaction also acts as a catalyst in the development of the energy business of

the group,” the statement added.

1.6 MANAGEMENT PROFILE

Profiles of Directors

The Board of Directors consists of 14 Directors, including 7 independent Directors, CMD

and Group CFO.

The profiles of the members are furnished below:

Mr. G. M. Rao, 58, Chairman and Managing Director, is the promoter and one of

the first directors of the Company. He is a distinguished industrialist and the founder

Chairman of the GMR Group of companies (Group) and GMR Varalakshmi

Foundation, the CSR arm of the Group. He is a graduate in mechanical engineering

from Andhra University.

He was awarded the Doctorate in Philosophy in 2005 by the Jawaharlal Nehru

Technological University, Hyderabad, in recognition of his services to industry. He was a

director on the Board of Vysya Bank for several years and also served as Non-Executive

Chairman of ING Vysya Bank between

October, 2002 and January, 2006.

“We have grown in assets but compared to other large

groups, we are only beginning. I don’t want to be the

biggest; I want to set up a great organisation.”

– G.M. Rao

Mr. Srinivas Bommidala, 44, Group Director, is the son-in-law of Mr. G. M. Rao and is

one of the first directors of the Company. Currently, he is the Managing Director of Delhi

International Airport Private Limited. He led the Company’s foray into the power sector

with setting up of 200 MW power plant at Chennai and was the Managing Director of

GMR Power Corporation Private Limited (GPCPL). As the Managing Director of Vemagiri

Power Generation Limited (VPGL), he led the implementation of the gas based power

project in Vemagiri, Andhra Pradesh.

He has over 23 years of experience in the infrastructure, agriculture, fast moving

consumer goods and services sectors.

Mr. G.B.S. Raju, 33, Group Director and Group Chief Financial Officer, is the elder son of

Mr. G.M. Rao and has been on the Company’s Board since 1999. He began his career

as the Managing Director of GMR Energy Limited and was responsible for setting up the

220 MW barge-mounted power plant. He led the Company’s diversification into Roads

Sector and is currently leading the Company’s foray into Property Development business.

He also heads various corporate functions, including Group finance function.

Mr. G. Kiran Kumar, 31, Group Director, is the younger son of Mr. G.M. Rao and has

been on the Company’s Board since 1999. He led the Company’s foray into Airports

business and currently as the Managing Director of GMR Hyderabad International Airport

Limited (GHIAL),

he is spearheading the implementation of the airport project at Hyderabad. He is also

responsible for the development of new business in the airports sector. In addition, he

heads Group HR and Corporate Communication functions. Before taking over the reins of

GHIAL, he headed the Group’s Finance function and the shared services.

Mr. B. V. Nageswara Rao, 53, Group Director, has been associated with the Group since

1990 and is one of the first directors of the Company. He held various senior

responsibilities in the Group and currently hads Energy Sector and Roads Sector

businesses of the Company. He is director on the Boards of several subsidiaries of the

Company and is the Managing Director of GPCPL. In addition, he holds charge of the

Corporate Relationships function at the Group level. During his stint with Andhra Bank

before joining the Group, he gained extensive experience in the banking sector with

specific focus in industrial finance. He is a graduate in mechanical engineering.

Mr. K. Balasubramanian, 64, Director, has been on the Company’s Board since 2004.

He is also the Chairman of GPCPL and is on the Boards of some subsidiaries of the

Company.

Before he joined the Board, his last professional assignment was as the Managing

Director and CEO of ING Vysya Bank. He has close to 40 years of experience in

international banking and worked with four large Banks in India and abroad.

Through his 25 years tenure with American Express Bank, he held several senior

positions such as the Country Head for Korea, India and Nepal as well as the Chief Credit

Officer for the Asia-Pacific region and Indian subcontinent.

Mr. P.B. Vanchi, 54, Director, has been on the Company’s Board since May, 2006. He

has an honors degree in electrical engineering from the University of Madras in 1973 and

has completed a Financial Management Programme from Harvard Business School in

2001. He has over 34 years of experience in the power, oil and natural gas sectors with

reputed companies in India and overseas.

He worked in senior management positions with electric utility and oil and gas companies

in the Middle East. He served as the vice president and regional business head for PSEG

Global Inc, an affiliate of Public Service Electric and Gas, New Jersey, U.S.A. and was

responsible for India and Middle East for development and investment in large thermal

electric generation projects.

He received the Indira Gandhi Priyadarshini Award in the year 2002 in recognition of his

notable contribution to the development of the Indian power sector. Till recently,

he was the head of the Group’s Power Sector Business Development.

Mr. Arun K. Thiagarajan, 62, Director, has been on Company’s Board since September,

2005.

He is also a director on the Board of GMR Energy Limited, a subsidiary of the Company.

He did his masters in electrical engineering from the Royal Institute of Technology,

Sweden.

He also obtained a management degree from Sweden and did an advanced management

program from Harvard Business School (USA). He held many senior positions in various

global companies including President & Country General Manager - Hewlett-Packard

India Limited, Vice Chairmans - Wipro and Managing Director - ABB Limited. He is also

on the Boards of several other companies.

Mr. K.R. Ramamoorthy, 66, Director, has been on Company’s Board since September,

2005.

He is on the Boards of some subsidiaries of the Company. He is a very senior banker,

with over 41 years of commercial and banking experience in India. He served as the

Chairman and Managing Director of Corporation Bank and Vysya Bank. He is currently

the non-executive Chairman of ING Vysya Bank. He has been providing consultancy

services to commercial banks in India and other developing countries. His services are

also being availed by World Bank, IMF and IFC. Presently, he is also on the Boards of

several other Companies.

Dr. Prakash G. Apte , 60, Director, has been on the Company’s Board since September,

2005. He holds a doctorate degree in economics from Columbia University. He also holds

a post graduate diploma in management from the Indian Institute of Management, Kolkata

and B.Tech. (Mechanical Engineering) from Indian Institute of Technology, Mumbai.

Currently, he is a director and UTI chair professor at the Indian Institute of Management,

Bangalore. He taught Economics at the Vassar College, Poughkeepsie, USA, and

Columbia University. He was a consultant at Edison Electric Institute, New York and a

project manager at Centron Industrial Alliance, Mumbai.

He has published four books and several articles in academic journals and professional

media.

He has served on expert committees appointed by NSE and SEBI and is a consultant to

several leading organizations in Government, public and private sectors. He has also

been a visiting faculty at the Katholieke Universiteit Leuven, Belgium. He is also on the

Boards of several other Companies.

Mr. R.S.S.L.N. Bhaskarudu, 66, Director, has been on the Company’s Board since

September, 2005. He is also on the Board of GHIAL, a subsidiary of the Company. He is

a graduate Electrical Engineer from College of Engineering, Andhra University. He has

over 44 years of experience with proven track record in management and leadership

positions.

He served more than twenty one years at Bharat Heavy Electricals Limited (BHEL).

During his tenure in BHEL, he was involved in the development and production of Turbine

Generator sets including auxiliaries all over the country.

He also worked for over 16 years with Maruti Udyog Limited (MUL) from its inception.

He served as the Managing Director of MUL. He also served as a Member / Chairman of

the Public Enterprises Selection Board of the Government of India. Presently, he is also

on the Boards of several other Companies.

Mr. T. R. Prasad, 65, Director, has been on Company’s Board since April, 2006. He is a

retired officer of the Indian Administrative Service of the 1963 batch. He served as

Cabinet Secretary, Govt. of India, from 1st November 2000 till 31st March 2002. Later, he

also served as member of the 12th Finance Commission. Prior to that, he served as the

Defence Secretary, Government of India; Secretary, Industrial Policy and Promotion,

Ministry of Industry; Chairman, Foreign Investment Promotion Board; Secretary, Heavy

Industry and Chairman, Maruti Udyog Limited.

He was also a director of IDBI, EXIM Bank, Vizag Steel Plant, Hindustan Shipyard,

Nagarjuna Chemicals and Fertilizers and Dredging Corporation of India. Presently, he is

also on the Boards of several other Companies.

Mr. Udaya Holla, 56, Director, has been on the Company’s Board since September,

2005.

He is also a director on the Boards of some subsidiaries of the Company. He is a lawyer

by profession and presently the Advocate General of the State of Karnataka. His main

areas of specialization are corporate laws, mergers and acquisitions, foreign

collaborations and joint ventures, FEMA and other legal matters. He has been practicing

law for more than 34 years.

Mr. Uday M. Chitale, 57, Director, has been on Company’s Board since September,

2005. He is also a director on the Board of VPGL, a subsidiary of the Company. He is a

practicing Chartered Accountant and is the Senior Partner of M.P. Chitale & Co, Mumbai,

affiliated to DFK International.

He is / has been director of some prominent companies including ICICI Bank Limited,

ICICI Securities Limited and JSW Steel Limited. He is currently a Director on the global

board of DFK International and Vice President in charge of Asia Pacific region. Mr. Chitale

served on several expert committees set up by the Government of India, Insurance

Regulatory & Development Authority, Reserve Bank of India, SEBI and professional

bodies such as Institute of Chartered Accountants of India and Bombay Chartered

Accountants Society. Mr. Chitale’s core professional practice areas include corporate

auditing and management advisory services especially to the financial sector. His special

interests include international business negotiations and commercial ispute resolution.

He is one of the pioneers who has contributed to the development of Alternative Dispute

Resolution in India and is the founder Director of Indian Council for Dispute Resolution.

In the year 2000, he received accreditation as ‘Certified Mediator’ from the Centre for

Effective Dispute Resolution (CEDR), UK.

GMR sitting - Chairman, G.M. Rao

GMR Group of over 2000 people is headed by the Chairman and Group Executive

Council members.

The council provides thought-leadership to the Group Companies in formulating

strategies, identifying critical behaviours, supporting core values, ensuring employee

programmes, driving these behaviours to make people countable and creating an

environment where people are respected and feel a part of the organisation.

GMR Group Executive Council

Sitting - Chairman, G.M. Rao

Standing from left to right - Srinivas Bommidala, G.B.S. Raju, P.B. Vanchi, K.

Balasubramanian, G. Kiran Kumar & B.V.N. Rao

Board of Directors

G. M. Rao - Chairman & Managing Director

Srinivas Bommidala -Group Director

G. B. S. Raju - Group Director & Group Chief Financial Officer

G. Kiran Kumar - Group Director

B. V. Nageswara Rao - Group Director

K. Balasubramanian - Director

P. B. Vanchi - Director

Arun K. Thiagarajan -Independent Director

K. R. Ramamoorthy - Independent Director

Dr. Prakash G. Apte - Independent Director

R. S. S. L. N. Bhaskarudu - Independent Director

T. R. Prasad - Independent Director

Udaya Holla - Independent Director

Uday M. Chitale - Independent Director

Company Secretary & Compliance Officer

A. S. Cherukupalli

Audit Committee

K. R. Ramamoorthy - Chairman

Arun K. Thiagarajan - Member

Udaya Holla - Member

Uday M. Chitale - Member

Shareholders’ Transfer & Grievance Committee

Udaya Holla - Chairman

K.R.Ramamoorthy - Member

G.B.S. Raju - Member

B.V.NageswaraRao - Member

Bankers

Central Bank of India

ICICI Bank Limited

ING Vysya Bank Limited

Statutory Auditors

Price Waterhouse Chartered

GMR group entity - Hyderabad International Airport Ltd (HIAL) - has recently announced

financial closure and commenced project works for the Greenfield International Airport at

Hyderabad. The project is being implemented on a build, operate and own (BOO) basis in

association with Malaysia's leading airport management company - Malaysian Airports

Holding Berhad.

GMR management intends to exploit the emerging opportunities in the transport sector.

"Accordingly, the company is exploring various options such as shipping, aviation and

container services," according to highly placed company sources.

Currently, the GMR Group is into infrastructure, transportation, power and manufacturing.

Leveraging the public-private partnership model, the group has been developing and

managing infrastructure projects over the last few years.

"Now, as a first step to exploit the opportunities in the transportation sector, the company

proposes to acquire aircraft for own use as well as for chartering services. The

management plans to consider foray into shipping and container services subsequently,"

the sources told Business Line.

GMR Industries board has recently approved a resolution to this effect and has also

decided to seek the approval of shareholders through postal ballot. The company

proposes to obtain required licences from the Civil Aviation Department, Airports Authority

of India and other statutory approvals, permissions from the Central and State

Government Departments to carry on the business of chartered airline business, sources

said.

HIAL has also recently formed a consortium and bid for the restructuring and

modernisation of the Delhi and Mumbai airports, with Fraport AG (Europe's largest cargo

hub and second largest passenger airport), Frankfurt Airport Services Worldwide (owners

and managers of Frankfurt Airport) and the India Development Fund (an IDF AMC

managed fund).

"The consortium's expression of interest for Delhi airport modernisation has been

accepted and it is now working on submitting a proposal that would detail its capabilities

in developing the project," sources added.

GMR was originally incorporated on June 30th, 1986 in the name and style of Sree

Sarada Ferro Alloys Ltd., to set up a plant for the manufacture of Ferro Chrome at an

installed capacity of 6,000 TPA at Ravivalasa Village, Tekkali Mandal in Srikakulam

District of Andhra Pradesh. The name of the Company was subsequently changed to

GMR Vasavi Industries Ltd and a fresh Certificate of Incorporation was obtained on 1st

February 1994.

As the project could not be implemented by the original promoters viz., Sri P V

Lakshmana Rao, Sri K Srinivas Rao and associates, the present Directors comprising

Shri G Mallikarjuna Rao and Shri S Suryanarayana Murthy had taken over the

management in 1989 and implemented the said project.

GMR's existing Ferro Alloys operations registered a capacity utilisation of 71.12% in

1990-91 which subsequently increased to 89.73% in 1991-92 and around 88.20% in

1992-93. The company enhanced the manufacturing capacity from 6,000 TPA to 10926

TPA during 1993-94 nd achieved a capacity utilisation of 63.83% during 1993-94. The

capacity utilisation has been lower due to shut down of the Plant for a period of about 2

months on account on implementation of the expansion project and time taken for

stabilisation of production.

2000 - The Company has entered into tripartite agreement with NSDL and CDSL and

Karvy Consultants Ltd. (R&T agents) to make the equity shares of the company available

for dematerialisation.

2001 - The Board has resolved to hive-off the brewery division to GMR Beverage

Industries Ltd., Hyderabad, a group company, which is going to be a 100 per cent

subsidiary of the company.

2002-V Balasubramanian appointed as Company Secretary of GMR Technologies.

2003 - GMR Technologies & Industries Ltd has informed BSE about the following

changes in the composition of the Board of Directors of the company: 1. Mr K V K

Seshavataram has been elected as the Chairman of the Board of Directors of the

company 2. Mr O Bangaru Raju has resigned form the Board of Directors of the company

and the Board has accepted his resignation wef December 30, 2002.

-GMR Industries picks up Best Performer Award 2007

-GMR Industries Ltd has appointed Dr. V Raghunathan as the Managing Director of the

Company, with effect from January 25, 2007.

CHAPTER 2

2.PRODUCT AND SERVICES

2.1 An OverviewTerminal FacilitiesBaggage WrapTelephone / InternetTravelHotel Booking CountersPorter Services at RGIABaggy Services

Terminal Facilities

Check-in Counters

To facilitate quicker turnaround times, there are 130 check-in counters and 16 self-check in counters for passengers carrying only cabin baggage.

   Immigration Counters (46)

Departure – 23Arrival – 22Transit – 1

   In-line Baggage Handling System

RGIA is the first Indian airport to install the four level in-line baggage handling system.   Transfer Desk

There are four types of transfers available in the terminal these include: 

Domestic to DomesticInternational to InternationalDomestic to InternationalInternational to Domestic

Telephone / Internet

Bharat Sanchar Nigam Limited & Tata Teleservices Limited have provided Fixed Line (Voice & Data) services at the Rajiv Gandhi International Airport. With several telephone and internet kiosks that are conveniently located throughout the terminal, they have

delivered the best telecom technology, global infrastructure, and the capacity for mass consumer outreach at the airport par with the facilities found in any other international airport. The airport operator has also procured and provided state of the art technology to supplement the infrastructure provided by the service providers to ensure all Airport users a tryst with true International standard access to all the teleservices and the ‘free W-Fi’ internet facilities*. A robust 99.99999% redundancy setup ensures Rajiv Gandhi International Airport to be a true world class facility!

Note: *45 mintues free

Travel

Travel Services at Rajiv Gandhi International Airport is provided by Thomas Cook and Mercury Travels. They will offer various range of services to Passengers like travel assistance and solutions, tour operator services, flight bookings, Rail bookings, Hotel bookings, Visa, passport assistance and travel insurances. They also offer services for meeters and greeters, escorting services, guided tour packages for the comfort of the passengers.

 

Hotel Booking Counters

Taj, Marriott and Novotel Hotels have their booking counters for the convenience of the arriving passengers at Rajiv Gandhi International Airport.

Porter Services at RGIA

Domestic Rs. 100

International Rs. 200

For both arrivals and departures

Baggy Services

Free Baggy services are available at:

International Departure area after security checkDomestic Departure area after security checkInternational Arrival areaDomestic Arrival area

Paid Baggy services are available at:

Car Park area

Valuation

Unlike DIAL, HIAL's revenues are not regulated by CPI-X model and thus have a

scope to grow with an increase in the traffic. Also, we believe that CPI-X model

for regulation on revenues would not make the project viable as the passenger

traffic of both airports is not comparable.

Being a greenfield development, the airport has a permission to levy User

Development Fee (UDF) for every departing domestic and international passenger.

The other differentiating factor from DIAL is absence of any major capex in

coming years. Thus, with a moderate increase in traffic flow YoY and expansion

of non-aero revenues, the EBITDA is expected to grow in the immediate future.

Our valuation is based on a 60 years model and incorporates revenues from aero

side only. On account of dullness in the aviation sector in India, we have assumed

a moderate growth in the passenger traffic. We have also taken a conservative

stance on the usage on non-aero facilities.

The land side revenues arising from 1500 acres are expected to take some time

to materialize. We have valued the land (without development) separately, based

on discount to current prices prevailing in the market. On account of the present

silence in the realty market, our valuations to that extent are conservative and

have a scope of upside, going forward.

2.3 Revenue and Income Summary

GROSS REVENUE

Gross Revenue = Income from Operations (including income from services in case of Power

Sector) plus Other Income.

Consolidated Gross Revenue has increased by 87% to Rs. 1,987 Crore from Rs. 1,065 Crore

due to: – induction of new revenue streams from Delhi Airport during the Current

Financial Year – higher revenues from power business Plant Load Factor (PLF) of GMR Energy

Limited has gone up to 26.4% in Current Year as against 12.7% during Previous

Year. PLF in case of GMR Power Corporation Pvt. Ltd. has gone up to 52.1% in Current Year

as against 44.3% during the Previous Year.

Power Sector revenues continue to have a dominant share in the total revenues with 62% share

for the Current Year though its share in the total revenue has declined from 85%. The shift is

mainly due to new stream of revenues from Delhi Airport which contributed 30% of total revenue

for the Current Year.

NET REVENUE

Net Revenue = Gross Revenue less Annual fee to Airports Authority of India in Delhi Airport.

Consolidated Net Revenue has gone up by 61% to Rs. 1,715 Crore from Rs. 1,065 Crore for the

reasons stated in Gross Revenue.

Share of Airport in Net Revenue is 19% as against 30% in Gross Revenue is due to sharing of

45.99% of the gross revenue with Airports Authority of India.

Power Sector continues to have majority contribution of 72% of net revenue as against 85%

during the Previous Year, though its share has reduced, due to induction of airport revenue

during the year.

PAT

Consolidated PAT has gone up by 157% to Rs. 242 Crore from Rs. 94 Crore. New

business Vertical i.e., Airport Sector (DIAL) has added Rs. 37 Crore (including

consolidation adjustments) during the Current Year to the consolidated PAT.

PAT from Power sector has gone up by Rs. 85 Crore (net of losses from Vemagiri

Power to the tune of Rs. 85 Crore) due to lower depreciation for the year in consolidated

financials on account of adoption of uniform depreciation rates for power assets as

specified in the Schedule XIV to the Companies Act, 1956, due to higher operational

efficiencies and new streams of service income.

PAT from Road Sector has gone up by Rs. 20 Crore mainly due to lower net finance

costs for the year.

The losses from “others” segment have gone down to Rs.11 Crore from Rs.17 Crore as

compared to the Previous Year due to interest income earned on IPO surplus funds in

GMR Infrastructure Limited.

CHAPTER 3

3.FINANCIAL INFORMATION FOR THE FISCAL YEAR

3.1FINANCIAL SUMMARY FOR THE FISCAL YEAR

The Company has a unique business model. It currently operates in three sectors of

infrastructure business viz., Airports,

Power and Roads. As infrastructure projects, pursuant to the related concession

agreements, are generally required to be developed and operated as special purpose

vehicles, the Company, as of today, develops and operates all its current

projects/businesses through various subsidiaries. The Company does not operate any

business directly. It does not have any stand alone revenues except dividends received

from subsidiary (s) and the treasury income earned on its surplus

funds.

It derives all business revenues and business profits from its various subsidiaries.

Hence, in the context of the business model of the Company, only consolidated

accounts present the complete picture of the revenues and results of the business

operations. The following table and the charts along with the comments, present the

highlights of the consolidated financial performance and analysis thereof. In addition,

the charts also give sector-wise break-up of the financial highlights.

For the year 2006-07, the Company had five operating subsidiaries which have

contributed to the aforesaid Consolidated Revenues.

These operating assets consist of two power projects, two annuity road projects and

one airport project.

Though another power asset, Vemagiri Power project, has commenced commercial

operations and generated a small revenue of Rs. 4.49 Cr, it could not continue the

operations due to non availability of fuel i.e. Gas.

The company’s subsidiary, Delhi International Airport Private Limited, has taken over

the operations of Delhi Airport effective from May 3, 2006. Hence, the aforesaid Gross

Operating revenue includes revenue from this newly inducted business only for a period

of about 11 months. The fee of Rs. 271.98 crore shown as reduction from Gross

Revenue represents the revenue share of 45.99% of the Gross Revenue from the

airport paid to Airports Authority of India, as per the terms of the Operation Maintenance

and Development Agreement.Rs. in Crore.

During the financial year 2006-2007, GMR Tambaram-Tindivanam Expressways Private

Limited generated total revenue of Rs. 84.31 Crore (includes other income but excludes

interest income) with a net profit of Rs.16.29 Crore as compared to Rs. 90.05 Crore

(includes other income but excludes interest income) and Rs.4.84 Crore respectively for

the financial year 2005-06.

During the financial year 2006-2007, GMR Tuni-Anakapalli Expressways Private Limited

generated total revenue of Rs 59.19 Crore (includes other income but excludes interest

income) with a net profit of Rs.10.44 Crore as compared to Rs. 60.38 Crore (includes

other income but excludes interest income) and Rs.1.37 Crore respectively for the

financial year 2005-06.

Since the both road projects are annuity based, the revenues from year to year should

normally be the same. However, the marginal decrease in the total revenues,

particularly in the case of Tambaram-Tindivanam project, is due to absence of certain

non recurring revenues earned during the previous year and increase in profits for the

year is mostly due to lower finance costs for the year.

In addition to the aforesaid two road projects in operation, construction of four road

projects has been taken up during the year, after achieving timely financial closure. Of

these four projects, one project is an annuity based road project while the rest are toll

based road projects. Details and status of these projects are as under:

• GMR Ambala - Chandigarh Expressways Private Limited, is implementing a toll based

road project on a 35 kilometers stretch between Ambala and Chandigarh on NH 21 and

NH 22. The total project cost of Rs.391.14 Crore has been funded in the debt equity

ratio of 2.57:1. The project achieved the financial closure in May, 2006.This is expected

to become operational by mid 2008. As on 31st March, 2007, an amount of Rs.142.12

Crore has been spent on the project.

• GMR Jadcherla Expressways Private Limited, is implementing a toll based road

project on a 46 kilometers stretch between Farukhnagar and Jadcherla on NH 7. This

project also includes the operation of an additional 12 kilometers stretch on the

Hyderabad - Bangalore highway. The total project cost of Rs.471 Crore has been

funded in the debt equity ratio of 3:1. The project achieved the financial closure in

August, 2006. This is expected to become operational by mid 2008. As on 31st March,

2007, an amount of Rs.106.46 Crore has been spent on the project construction.

• GMR Pochanpalli Expressways Private Limited is implementing an annuity based road

project on a 86 kilometers stretch between Adloor Yellareddy and Kalkallu on NH 7.

This project also includes the operation of an additional 17 kilometers stretch on the

Hyderabad-Nagpur highway. The total project cost of Rs.690 Crore has been funded in

the debt equity ratio of 4 : 1. The project achieved the financial closure in September,

2006. This is expected to become operational by the end of 2008. As on 31st March,

2007, an amount of Rs.131.43 Crore has been spent on the project.

• GMR Ulundurpet Expressways Private Limited is implementing a toll based road

project on a 73 kilometers stretch between Tindivanam and Ulundurpet on NH 45. The

total project cost of Rs.795 Crore has been funded in the debt equity ratio of 3:1. The

project achieved the financial closure in October, 2006. This is expected to become

operational by the end of 2008. As on 31st March, 2007, an amount of Rs. 120.09 Crore

has been spent on the project.

Future Plans

National Highways Authority of India (NHAI) has set the highest ever annual target to

offer 6273 kms of roads for development on BOT basis for the year 2007-08. The

estimated cost of this plan is about Rs.40,955 Crore.

This plan includes:

• 2995 kms of six laning of Golden Quadrilateral under NHDP (National Highway

Development Program) phase V,

• 2224 kms of four laning under NHDP phase IIIA and

• 1054 kms of four laning under NHDP phase IIIB.

The plan outlay of NHDP till year 2010 is as given below:

NHDP Phase – III A & B – About 6000 kms of four laning

NHDP Phase – V – Six laning of Golden Quadrilateral- about 3000 kms

NHDP Phase – VI – Expressways to be developed on Greenfield basis-about 1000 kms

NHDP Phase – VII – Ring roads, Bypasses around major metros and cities

The aforesaid plans of NHAI indicate that extensive business opportunities will unfold in

the Roads Sector in the year 2007-08 and thereafter.

Apart from mobilizing all resources and harnessing the best practices in all aspects of

project implementation to ensure that the four Road projects under implementation are

commissioned on schedule, we are gearing ourselves to make competitive bids for all

the projects identified as viable and profitable based on our detailed bid studies. As part

of the business development efforts, we have been doing extensive analysis and

studies on the potential projects such as:

• Detailed traffic studies taking into consideration the growth prospects specific to

project corridors

• Tie-up with potential contractors for implementing the project

• Tie-up with Financial Institutions for innovative financial structuring

• Finalization of tolling structure and collecting mechanisms including State of the Art

Highway Traffic Management Systems (HTMS)

• Building adequate expertise and talent to execute the projects in line with Global

Standards

Other major recent developments towards adding new concessions include:

• Submission of bid for Khalghat – MP / Maharashtra Border Road Project of 83 kms

after making all the analysis as above. We are awaiting the bid result for this project.

• Submission of Request for Qualification (RFQs) for the eight six laning stretches under

NHDP Phase V and also for the Greenfield Six lane Eastern Peripheral Expressway

project, aggregating to a total length of about 1350 kms.

• Formed a strategic joint venture with M/s Punj Lloyd Ltd. for two of the eight six laning

projects under NHDP Phase V to ensure successful execution and operation of these

projects.

We have strong long term strategic plans to significantly add to our current portfolio of

concessions and continue to remain as one of the lead players in the BOT road

projects.

3.2 BREAKUP OF REVENUE AND SALES TRENDS

Particulars 31-Mar-2009 31-Mar-2008

Gross Operating Revenue

Other Revenue

Total Gross Revenue

Less: Fee paid to Airports

Authority

of India

Net Revenue

Operating Expenditure

EBIDTA

Interest

Depreciation

Profit Before Tax

Taxes

1,968.74

18.35

1,987.09

271.98

1,715.11

1,153.03

562.08

144.14

134.71

283.23

41.46

241.77

1,061.65

3.33

1,064.98

–

1,064.98

608.62

456.36

130.27

219.97

106.12

12.51

93.61

GROSS REVENUE

Gross Revenue = Income from Operations (including income from services in case of

Power Sector) plus Other Income.

Consolidated Gross Revenue has increased by 87% to Rs. 1,987 Crore from Rs. 1,065

Crore due to: – induction of new revenue streams from Delhi Airport during the Current

Financial Year.

3.3Ratio and Market Indicators

Financials

We expect GMR to post consolidated revenue of Rs38bn (65% YoY growth), Rs44.0

(16.8% YoY growth) and Rs54.0bn (21% YoY growth) in FY09E, FY10E and FY11E,

respectively. From FY09E, we expect the airport to clinch only a 35% share in

overall revenues. However, the revenue combination may undergo a change YoY,

on account of damp patches in power and specially in the airport sector. We

expect GMR's EBITDA margins improve in FY09E on account of power plant

operations for five month and commencement of road BOT projects. We expect

GMR to post a consolidated PAT (after minority interest) of Rs1.6bn, Rs1.9bn and

Rs2.5bn, respectively from FY09E, FY10E and FY11E, respectively. We expect

GMR's DIAL Phase 1, regular operations of HIAL, SGIAL, power and road BOT

projects to drive top-line CAGR of 33% and PAT CAGR of 25% from FY08-11E.

Risk to our valuations

Fluctuations in revenues and profits are expected on account of:

Airport and road BOT revenues are a function of traffic; thus, they are

highly volatile and are subject to damp patches between the years.

Regulation of power traffic and non-availability of gas and coal can affect

the working of power plants (which was the case in FY09E).

The induction of Intergen debt in GMRs balance sheet (expected sooner)

will have a sizeable impact on Debt/Equity ratio and the interest charges.

On the same grounds, a low traffic as against higher depreciation on

account of capex and higher input coast can damp the EBITDA and NET

margins.

Higher debt levels for future power projects and DIAL rather than our

assumptions, will result in higher interest cost and thus reduce the PAT.

Real estate forms a one-fourth part of our overall valuations. Any further

downside in prices or land issues may affect the land value.

The CMP of Rs70 discounts GMR's FY09E, FY10E and FY11E P/BV by 2.0x, 2.0x

and 1.9x, respectively. We initiate coverage on the stock with an Accumulate

rating and twelve-month SOTP target price of Rs81.

GMR Infrastructure

Q3FY09 …the worst maybe over

GMR posted a 79.3% YoY growth in Q3FY09 on account of addition of Hyderabad

airport and two power plants in the revenue stream. Higher tariffs in power

plants and better margins in annuity projects lead to a 198bps YoY improvement

in EBITDA margins. Interest and depreciation continued to balloon on account of

rising interest rates and increased capex in DIAL. The company also booked a

forex loss of Rs 252m along with higher tax leading to a 69.3% YoY decline in PAT

to Rs 246m. PAT after minority interest stood at Rs 409m.

Forth Quarter…would show signs of improvement

We expect the Q4FY09 sales numbers to rise as compared to Q3FY09 levels (sales

at Rs 11bn,25% YoY grt and 15.7% QoQ grt) on account of some pick up in PAX,

addition of Ambala Chandigard BOT traffic and all power plants functioning for

full quarter. However the EBITDA margins would also remain stable as power plant

higher EBITDA would off-set higher airport and new BOT road project expenses.

Thus, higher sales and robust power margins are expected to push Q4FY09 PAT.

However, the fourth quarter would be crucial to watch as we have expected the

air traffic to improve,power plants to run at best PLFs and lower forex losses.

3.4 EARNINGS AND INCOME ESTIMATES

GMR Hyderabad International Airport Limited (“GHIAL”)

GHIAL was incorporated on December 17, 2002 in Hyderabad, Andhra Pradesh as

Hyderabad International Airport Limited and received its certificate for commencement

of business on October 23, 2003. With effect from November 29, 2005 the name of the

company has been changed to GMR Hyderabad International Airport Limited. The

registered office of GHIAL is located at “Aparna Crest”, III Floor, Road No 2, Banjara

Hills, Hyderabad 500034. GMR Hyderabad International Airport Limited is developing a

green field international airport at Shamshabad, Hyderabad.

Shareholding

The equity shareholding pattern of GHIAL as on June 30, 2006 is as under:

Sl. No. Name of the Shareholder No of Shares of Percentage

Rs. 10 each (%)

1 GMR Infrastructure Limited 36,995 63.00

2 GVL Investments Limited 2 0.00

3 GMR Holdings Private Limited 2 0.00

4 GMR Operations Private Limited 1 0.00

5 Government of Andhra Pradesh 7,635 13.00

6 Airports Authority of India 7,635 13.00

7 Malaysia Airports Holdings Berhad 6,460 11.00

Total 58,730 100.00

Board of Directors

The directors on the board of GHIAL as on July 8, 2006 are:

1. Mr. G. M. Rao

2. Mr. G. Kiran Kumar

3. Mr. Srinivasa Bommidala

4. Mr. B. V. N. Rao

5. Mr. P. Ramakanth Reddy

6. Mr. R.S.S.L.N.Bhaskarudu

7. Mr. K. Balasubramanian

8. Prof. Rigas Doganis

9. Dato’ Bashir Ahmad bin Abdul Majid

10. Mr. T. Chatterjee

11. Mr. G.B. S Raju (Alternate Director to Prof. Rigas Doganis)

12. Mr. T.S. Apparao (Alternate Director to Mr. P. Ramakanth Reddy)

13. Mr. Brahmananda Reddy (Alternate Director to Mr. T. Chatterjee Kumar)

14. Dato’ Abd Hamid Bin Mohd Ali (Alternate Director to Dato’ Bashir Ahmad bin Abdul

Majid)

The Company has a unique business model. It currently operates in three sectors of

infrastructure business viz., Airports, Power and Roads. As infrastructure projects,

pursuant to the related concession agreements, are generally required to be developed

and operated as special purpose vehicles, the Company, as of today, develops and

operates all its current projects/businesses through various subsidiaries.

The Company does not operate any business directly. It does not have any stand alone

revenues except dividends received from subsidiary (s) and the treasury income earned

on its surplus funds. It derives all business revenues and business profits from its

various subsidiaries. Hence, in the context of the business model of the Company, only

consolidated accounts present the complete picture of the revenues and results of the

business operations. The following table and the charts along with the comments,

present the highlights of the consolidated financial performance and analysis thereof. In

addition, the charts also give sector-wise break-up of the

financial highlights.

For the year 2008-09, the Company had five operating subsidiaries which have

contributed to the aforesaid Consolidated Revenues. These operating assets consist of

two power projects, two annuity road projects and one airport project.

Though another power asset, Vemagiri Power project, has commenced commercial

operations and generated a small revenue of Rs. 4.49 Cr, it could not continue the

operations due to non availability of fuel i.e. Gas.

The company’s subsidiary, Delhi International Airport Private Limited, has taken over

the operations of Delhi Airport effective from May 3, 2006. Hence, the aforesaid Gross

Operating revenue includes revenue from this newly inducted business only for a period

of about 11 months. The fee of Rs. 271.98 crore shown as reduction from Gross

Revenue represents the revenue share of 45.99% of the Gross Revenue from the airport paid

to Airports Authority of India, as per the terms of the Operation Maintenance and Development

Agreement.

Brief details of financial performance of DIAL during the last financial year are as under:

During the Financial Year, The Company received Rs.200 Crore towards equity contributions as

per the Shareholders Agreement. The Company availed a short-term loan of Rs. 150 Crore,

performance bond facility of Rs.500 Crore and tied up working capital facility of Rs.134.5 Crore.

3.5 STOCK ANALYSIS

General Maritime Corp. (GMR)

NYSE

After-Hours Snapshot:

07/07/2009 04:32 PM EDT

8.85

Change

0.00

% Change

0.00%

Comprehensive Quote:

07/07/09 04:04 PM EDT

Last

8.85

Change

0.00

% Change

0.0%

Volume

762,340

Open

0.00

High

0.00

Low

0.00

Prior Day's

Volume

762,340

52-Week High

20.52

(08/06/2008)

52-Week Low

6.40

(03/09/2009)

Prior Day's Close

8.85

 

NYSE and Amex prices are delayed at least 20 minutes and Nasdaq prices are delayed

at least 15 minutes. Volume updates until 8:00 p.m. ET.

Real-Time Quotes

Other Prices

U.S.  Germany   Xetra    

Historical Quotes

Closing prices since 1/2/1970.

Stock Data

386.16 Market Cap(Mil)

11.89 P/E Ratio

21.74% Dividend Yield

$0.5 Latest Dividend

05/22/09 Pay Date of

Latest Dividend

34% stock div. Last Stock Split

12/17/08 Date of Last Split

41.97 Shares

Outstanding (Mil)

35.64 Public Float (Mil)

All data updated daily before market opens

Source: Reuters

Dow Jones Industry Group Center

Marine Transportation

CHAPTER 5

5.1 Top 5 Competitors

Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

GMR Infra 125.40 22,994.31 159.20 97.67 6,083.74Lanco Infratech 342.50 7,615.90 4,082.59 264.87 2,145.97Unity Infraproj 280.30 374.71 1,130.79 69.65 635.06Pratibha Ind 151.35 252.53 754.36 44.73 460.08Atlanta 70.20 114.43 194.32 19.37 375.11Supreme Infra 73.55 102.06 383.12 26.99 173.77PBA Infra 49.10 66.29 366.35 11.75 334.23Ruchinfra 26.75 0.00 - - -

Comparison with Competitors

Balance Sheet ------------------- in Rs. Cr. -------------------

GMR Infra

Lanco Infratech

Unity Infraproj

Pratibha Ind

Gayatri Project

Mar '08 Mar '08 Mar '08 Mar '09 Mar '09

Sources Of Funds

Total Share Capital 364.13 219.79 13.37 16.69 10.10

Equity Share Capital 364.13 219.79 13.37 16.69 10.10

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 5,240.44 1,373.31 342.27 208.04 169.06

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 5,604.57 1,593.10 355.64 224.73 179.16

Secured Loans 469.18 227.88 246.07 205.38 310.18

Unsecured Loans 10.00 324.98 33.35 30.00 141.93

Total Debt 479.18 552.86 279.42 235.38 452.11

Total Liabilities 6,083.75 2,145.96 635.06 460.11 631.27

GMR Infra

Lanco Infratech

Unity Infraproj

Pratibha Ind

Gayatri Project

Mar '08 Mar '08 Mar '08 Mar '09 Mar '08

Application Of Funds

Gross Block 1.71 202.30 78.06 158.08 257.28

Less: Accum. Depreciation 1.03 23.48 20.73 12.58 94.42

Net Block 0.68 178.82 57.33 145.50 162.86

Capital Work in Progress 0.00 81.42 0.00 49.11 0.02

Investments 4,780.31 1,653.55 44.29 14.84 127.81

Inventories 0.00 155.97 38.47 176.19 38.56

Sundry Debtors 0.00 584.78 352.15 127.44 167.99

Cash and Bank Balance 2.37 87.31 42.86 4.01 18.79

Total Current Assets 2.37 828.06 433.48 307.64 225.34

Loans and Advances 1,215.91 1,437.22 388.54 131.23 175.42

Fixed Deposits 105.78 338.63 62.15 65.21 56.91

Total CA, Loans & Advances 1,324.06 2,603.91 884.17 504.08 457.67

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 21.26 2,353.78 279.71 231.33 107.38

Provisions 0.05 17.95 71.10 22.12 9.69

Total CL & Provisions 21.31 2,371.73 350.81 253.45 117.07

Net Current Assets 1,302.75 232.18 533.36 250.63 340.60

Miscellaneous Expenses 0.00 0.00 0.08 0.00 0.00

Total Assets 6,083.74 2,145.97 635.06 460.08 631.29

Contingent Liabilities 3,132.29 4,055.68 0.00 116.42 175.79

Book Value (Rs) 30.78 71.64 266.04 134.68 177.31

Analyst View

Sell GMR Infra: Hitendra Vasudeo

Stock market analyst Hitendra Vasudeo of stockmechanics.com has maintained 'Sell' rating on GMR

Infrastructure stock to achieve a target that lies between Rs 142.60-Rs ... and a low of Rs 45.60 on BSE.

Mr. Vasudeo is of the view that investors should sell the stock today to avoid loss.

After ... Story - Neeta Aurora - 06/16/2009 - 05:31 - 0 comments - 0 attachments

Buy GMR Infra With Target Of Rs 205: Nirmal Bang

Research-cum-broking house, has recommended a buy call on GMR Infra with a short

term target of Rs 205 in its June 10, 2009 research ... at Rs 0.30 million over previous

year period.

Analyst View, Buzzing Stocks, Infrastructure Sector, Stock Trading, Featured, ...