Delhi International Airport Ltd (DIAL) has reported Rs 111.8-crore loss for the year ended March 31, 2019, (FY19) due to sharp reduction in aeronautical revenues. The GMR Infra subsidiary had posted Rs 38.3-crore profit after tax (PAT) in FY18.
Aero revenues, which include passenger service fee, landing and parking charges for airlines, were down 42% year-on-year to Rs 987.8 crore due to low airport tariffs for the ongoing control period a five-year period for which rates are set by the airport regulator. The earnings before interest, tax, depreciation and amortisation (Ebitda) fell sharply by 37.7% y-o-y to Rs 511.9 crore in FY19 from Rs 822.6 crore a year ago. The Ebitda margin was down 12 bps to 31% during 2018-19.
Delhi airport charges were slashed up to 90% from July 2017 onwards leading to fall in the aeronautical revenues for the operator. DIAL s profits fell 93% y-o-y to Rs 38.3 crore during FY18 with the reduced tariffs coming to effect.
The airport operator received a nod to hike user development fee from passengers on the ground that the current tariffs were below the base airport charge set out in the government agreement but it failed to push the company into profits in 2018-19.
Non-aeronautical revenues which includes retail, F&B and advertising were up 16.2% y-o-y to Rs 2,091 crore on account of higher passenger footfall at the airport. Passenger traffic at the Indira Gandhi International airport increased by 5.4% y-o-y to 69.2 million in FY19.
User charges for both passengers and airlines at DIAL are set for revision from this year for the third control period 2019-24. The fees will be raised as the airport has plans to invest Rs 9,000 crore for expansion of the facility in the next three-four years. We expect new tariffs to be rolled out by the end of this year, a GMR executive said.
The company recently raised Rs 2,400 crore by selling 10-year bonds to investors. Earlier this year, DIAL raised Rs 2,000 crore from realty monetisation to fund its expansion plans. GMR group sold its 45% stake in airports business to Tata Sons and Singapore sovereign wealth fund GIC for Rs 8,000 crore in March. GMR’s Hyderbad airport reported 21.5% jump in PAT to Rs 732.8 crore on the back of 17.9% y-o-y increase in the passenger footfall.