GMR Airports looks abroad, Jakarta emerges as promising opportunity
AVIATION & AIRPORTS

GMR Airports looks abroad, Jakarta emerges as promising opportunity

GMR Airports Infrastructure, the airport operator, is actively exploring opportunities abroad, particularly in the Middle East, South Asia, the Philippines, and Jakarta. Meanwhile, within India, the company is eyeing available brownfield prospects. At a recent analyst conference named "Chasing Growth 2024", organised by Kotak Institutional Equities, the management emphasised its interest in airports capable of accommodating over 5 million passengers.

Operating five airports?three in India (including Delhi) and two overseas?GMR Airports Infrastructure witnessed a 22% year-on-year increase in passenger traffic, totalling around 100 million passengers in the first nine months of FY24. Notably, the country's busiest airstrip, Delhi Aiport, contributes significantly to this traffic.

GQG Partner, led by Rajiv Jain, holds a nearly 5% stake in the company. Jain expressed bullish sentiments in a recent television interview, predicting a valuation of over $10 billion solely for Delhi Airport. The company's stock has surged more than twofold over the past year.

Regarding international opportunities, GMR Airports Infrastructure clarified during the conference that it isn't aggressively pursuing airport acquisitions but rather focusing on assets that could enhance the international passenger mix. Targeting gateway airports in regions with established regulatory frameworks, the company aims to collaborate with local partners well-versed in local regulations to streamline operations.

Within its overseas portfolio, GMR oversees airports in Indonesia and the Philippines, both experiencing notable increases in passenger traffic in FY24. Notably, the airport in Cebu witnessed a remarkable 54% surge.

While greenfield airport opportunities are limited in the domestic market, the company is exploring brownfield projects with the intent of participating in airport privatisation ventures, prioritising those with capacities exceeding 5 million passengers annually.

GMR Airports Infrastructure has succeeded with its acquired airports, exemplified by Goa Airport turning EBITDA positive within three quarters. The company is also expanding Goa's capacity to 8 million passengers, potentially growing to 33 million over a 55-year concession period. Hyderabad International Airport saw increased ownership last year, with GMR acquiring an additional 11% stake from Malaysia Airports Holding, bringing its total ownership to 74%.

GMR Airports Infrastructure, the airport operator, is actively exploring opportunities abroad, particularly in the Middle East, South Asia, the Philippines, and Jakarta. Meanwhile, within India, the company is eyeing available brownfield prospects. At a recent analyst conference named Chasing Growth 2024, organised by Kotak Institutional Equities, the management emphasised its interest in airports capable of accommodating over 5 million passengers. Operating five airports?three in India (including Delhi) and two overseas?GMR Airports Infrastructure witnessed a 22% year-on-year increase in passenger traffic, totalling around 100 million passengers in the first nine months of FY24. Notably, the country's busiest airstrip, Delhi Aiport, contributes significantly to this traffic. GQG Partner, led by Rajiv Jain, holds a nearly 5% stake in the company. Jain expressed bullish sentiments in a recent television interview, predicting a valuation of over $10 billion solely for Delhi Airport. The company's stock has surged more than twofold over the past year. Regarding international opportunities, GMR Airports Infrastructure clarified during the conference that it isn't aggressively pursuing airport acquisitions but rather focusing on assets that could enhance the international passenger mix. Targeting gateway airports in regions with established regulatory frameworks, the company aims to collaborate with local partners well-versed in local regulations to streamline operations. Within its overseas portfolio, GMR oversees airports in Indonesia and the Philippines, both experiencing notable increases in passenger traffic in FY24. Notably, the airport in Cebu witnessed a remarkable 54% surge. While greenfield airport opportunities are limited in the domestic market, the company is exploring brownfield projects with the intent of participating in airport privatisation ventures, prioritising those with capacities exceeding 5 million passengers annually. GMR Airports Infrastructure has succeeded with its acquired airports, exemplified by Goa Airport turning EBITDA positive within three quarters. The company is also expanding Goa's capacity to 8 million passengers, potentially growing to 33 million over a 55-year concession period. Hyderabad International Airport saw increased ownership last year, with GMR acquiring an additional 11% stake from Malaysia Airports Holding, bringing its total ownership to 74%.

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