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Delhi International Airport profit soars 16.2 pct to Rs 586 cr

Net profits posted by DIAL (Delhi International Airport) rose by 16.2% in 2016-17 to Rs 585.96 crore on the back of a sharp increase in other income and lower interest costs.

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Therefore it means that just like any other passengers, the premium flyers will have to endure those tiresome immigration queues. (PTI)
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The Delhi airport saw a traffic of 50 million passengers during the year, a first for any airport in the country. (PTI)

Net profits posted by DIAL (Delhi International Airport) rose by 16.2% in 2016-17 to Rs 585.96 crore on the back of a sharp increase in other income and lower interest costs. DIAL, a joint venture between GMR Airports and the Airports Authority of India (AAI), reported revenues of Rs 5,624.23 crore, up 9.2%, while other income jumped 90% to Rs 306.99 crore. While DIAL’s profits were boosted by lower finance costs and other expenses, the increase in the bottom line would have been higher had it not been for a jump in the tax outgo of Rs 540.50, up nearly 350%. The Delhi airport saw a traffic of 50 million passengers during the year, a first for any airport in the country.  Meanwhile, the GVK Group-led Mumbai International Airport (MIAL) posted net losses of Rs 89.75 crore for FY17, partly hampered by the lack of infrastructure. Revenues increased by 12.4% to Rs 3,025.99 crore in the year but acute capacity constraints meant the costs could not be absorbed.

In July 2017, GVK sold the residual 10% stake in Bangalore International Airport (BIAL) to the Fairfax group for Rs 12,90 crore. It had earlier sold a 23% stake in March 2017 for Rs 2,200 crore. In FY17, BIAL reported a 36% jump in net profit to Rs 597.71 crore. GVK has won the bid to develop and operate the Navi Mumbai International Airport which is expected to cost Rs 16,000 crore and be operational from 2020. Meanwhile, the net profit from GMR’s Hyderabad airport (GHIAL) — a joint venture between the Andhra Pradesh government, AAI and GMR — increased a whopping nearly 7,000% during FY17 to Rs 434.19 crore as a result of increase in other income and a check on overall expenses. The revenues increased by 79.3% to Rs 1,105.40 crore when compared to Rs 616.51 crore, driven by a big increase in the number of flights operating from the airport.

The airport’s other income also shot up by nearly 145% to Rs 102.67 crore. “Passenger traffic touched 15.29 million, a growth of 22%. Similarly, cargo also registered an impressive growth to reach 123,489 MT, a growth of 9%,” the company noted in its annual report. The year saw a turnaround in the operations of the Male airport (GMIAL) — a joint venture between Maldives and GMR. The company received a compensation of $270 million or Rs 1,780 crore after an international tribunal stayed a decision of the Maldivian government to cancel a concessional agreement — between GMR and the government of Maldives to operate the Male airport. GMIAL reported a net profit of Rs 527.04 crore compared to a loss of Rs 40.16 crore in FY16. GMR Airports contributed almost 49-50% of the total revenues of the GMR group in FY17.

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