GVK Infra to 'go all guns blazing' to bid for Navi Mumbai airport

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The state government had on Wednesday called for a Request for Qualification (RFQ) for the construction of the  second airport in Mumbai. Reuters The state government had on Wednesday called for a Request for Qualification (RFQ) for the construction of the second airport in Mumbai. Reuters
SummaryState govt had called for a RFQ for the construction of the second airport in Mumbai.

GVK Infra, which operates the Mumbai International Airport Limited (MIAL), will go all guns blazing to bid for the Navi Mumbai International Airport Limited Project (NMIAL), Issac George, the chief financial officer of the company said in a analyst conference call on Thursday.

The state government had on Wednesday called for a Request for Qualification (RFQ) for the construction of the second airport in Mumbai.

“We will bid for the project. We have a prized presence in this case, as we have a right for first refusal (RoFR) for the project,” Issac George said at the analyst call.

He added that the company may have to wait till June to make the final bid for the project.

The Hyderabad-based company which in January launched its new terminal, T2, plans to commercialized 8 acres of MIAL land in four parcels which would translate to about 1.8 million square feet of space.

“We are currently evaluating certain bids that have come in. We should finalise this in the next 7-10 days,” George said.

The land GVK plans to commercialise is not a part of the 75 acres encroached land that is currently under dispute.

The company also plans to develop about 120 acres of land which would lead to a development of about 22 million square feet space in the next 7 years at the MIAL.

GVK also plans to retire its debt in its operations in the airport segment by selling a significant minority stake, George said.

The company's total debt in its airport operations stood at about Rs 2400 crore, as of Dec 31, 2013 as compared to Rs 2,000 crore during March 31, 2013.

The process of divestment of a minority stake in its airport operations will help the company reduce its debt pile, George said.

For its operations at the MIAL, GVK recorded a 119% increase in its net profit to Rs. 91.51 Crore as against Rs.41.74 Crore in the corresponding quarter of the previous year. The revenue recorded from the MIAL operations also saw a hike by 58% to Rs. 547.39 Crore against 347.39 Crore for the corresponding quarter of the previous year. The EBITDA figure for the December quarter for MIAL stood at Rs 195 crore.

For its operations at the BIAL, the Hyderabad-based company recorded a 117% increase in its Net Profit to Rs. 46.59 Crore for the quarter ended December 31, 2013 as against Rs.21.50 Crore

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