Home » GMR confident of servicing debt

GMR confident of servicing debt

GMR confident of servicing debt

Media reports indicate that GMR Infrastructure does not face problem on servicing its debt as the firm feels most of the debt has been ring-fenced over the cash flow of specific projects.

In 2012-13, the company paid Rs 608 crore as interest charges, higher than 31 per cent from the previous year. As of end-2013, the firm had a net debt of Rs 33,700 crore, up 15 per cent from the previous financial year.

For the last six months, the company has been taking efforts to reduce some of the assets and raise money. The company plans to raise as much as Rs 5,000 crore during 2013-14 by selling assets.

While the first target is to shed its stake in three highway projects, the firm is also understood to have initiated a process to exit from the Istanbul Sabiha Gokçen International Airport in Turkey.

The company wants to reduce its leverage (ratio of debt to equity), which stood at 3.07 by the end of 2012-13, against 2.59 in the previous financial year.

Going forward, GMR plans to spend around Rs 1,700 crore towards funding its ongoing power vertical and other projects.

Meanwhile, the company wrote off Rs 453 crore on two of its global assets in coal mines and airports.

Leave a Reply