Name of the Student: Manisha Shadangi Enrolment Number: IFHE2301RL1167

SEM 1 /FAF

To analyse the Financial Position of the Company and to the strategies the
method of financing the new project.

Course Project Report

Introduction
In my 2+ years of Experience in GMR Group of Companies , I had an exposure to various
sectors of the their businesses namely, Aviation, Aerospace Engineering, Hospitality and
Infrastructure Development Sector having a multi-dimensional and Multi- Functional exposure
in legal, HR, Taxation, Accounting, Implementing the compliance related IT Tools.

Every Organisation faces some hesitation from its Human Resource/ Employees for
implementing a new policy or a new Standard Operating procedure or Business process
management or such other Technology as may be required for the business for better analysis
of Organisational data and Financial Information. This Course project will highlight certain
issues/challenges and will provide some recommendation by the end of each course project for
each subject in its conclusion part which shall be beneficial for the organisation upon its
implementation.
GMR Group , in order to be able to maintain a stable and competitive position on the market,
to provide inputs for the management, to make important strategic decisions and to achieve
their economic goals, is forced to constantly analyse and monitor their financial situation with
which appears towards financial subjects and the surrounding’s situation.

Project Objective
The primary objectives of this study are as follows:
To Analyse the Financial Position of GMR Airports Infrastructure Limited as the top
management of the Company i.e., Ultimate Parent Company of GMR Hyderabad International
Airport Limited is willing to setup a new Airport in Nagpur if GMR Group is able to win the
bidding after the decree made by the Honourable High Court of Mumbai.

This report would highlight on the Quarterly trends from June 2022 to June 2023 and Annual
trends of Financial Year ended on 31st March. It will further analyse about the peer i.e., a Peer
Group Comparison GMR Infra and Dream Folks based on its Quarterly and Annual trends.

1. Information Collection & Analysis

Sources of data collection
 GHIAL- Department of Finance and Accounts ;
 GHIAL- Strategic Planning Group;
 Financial Information published on Bombay Stock Exchange;
 Annual Report published by GMR Airports Infrastructure Limited;
Formats Used
Excel sheet for compilation and preparation of the information.

Key Market Consideration

 The Primary data is the data collected is through the database maintained by the
Organisation under its Finance and Accounts division

 The collection and Analysis of such primary and secondary data would help in greater
presentation of the information’s by way of comparative study in relation to the
profitability trends of the company.

 The data collected from the above mentioned sources will be analysed using graphical
presentation for a strategic analysis of the Financial Performance of the Company in order
to take robust decision.

Data collected from the following Persons

 CA. Gopalakrishna Murthy – Head Finance and Accounts- GHIAL
 Mr. Sahil Goel –Manager Strategic Planning Group- GHIAL;
 Mr. G. Kranti – Manager at CEO Office- GHIAL

Data Analysis
The data analysis process involved combining the information collected from various sources
to pull out meaningful conclusions about the liquidity available and the borrowing power of the
company based on of financial performance of the Company.
Further for the purpose of data analysis the details of revenue, other income, expenditure
depreciation, interests etc., were also incorporated. This Study provided measureable
information that allowed for the comparison of financial performance of the company based on
Quarterly and Annual Trends.
The financial situation of the business subject is considered to be a complex output of their
whole performance. This output is presented through the ratio indicators of activity,
profitability, liquidity, indebtedness and market value. These indicators are based on the
synthetic indicators of financial accounting and they demonstrate the complexity of the
business subject’s performance interpretation.
This Course Project helped to understand the disparities between GMR Infra and its Peer
Group. The findings from the data analysis serve as a basis for formulating policy,
recommendations and understanding the complexities that can be experienced by the company
for financing the new projects.

Increased levels revenue and positive appreciation of the net profit have enabled the company
to acquire a new airport by infusing additional capital from the business into the said project.

During the data analysis it was enumerated that GMR Airport Infrastructure Limited it has a
strong momentum over the dealing of its shares however there was an increase in the
borrowing backed by promoters by way of pledge that could be a matter of concern for the
stakeholders.

Findings
An overview of Quarterly trends of the Profit And Loss Statements of GMR Airport
Infrastructure Limited from June 2022 up till June 2023 is represented in Table No.1.1

(in Cr.) Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 FY 22-23

Income Statement
Revenue 66.77 28.17 28.44 21.93 23.4 101.94
Other Income 18.09 10.64 8.63 4.41 0.47 24.15
Total Income 84.86 38.81 37.07 26.34 23.87 126.09
Expenditure -73.94 17.18 -46.59 -41.85 -44.91 -116.17
Interest -54.59 -45.64 -22.56 -23.35 -24.75 -116.3
PBDT 10.92 55.99 -9.52 -15.51 -21.04 9.92
Depreciation -1.49 -0.07 -0.09 -0.09 -0.1 -0.35
PBT 9.43 55.92 -9.61 -15.6 -21.14 9.57
Tax -- -- -- -- -- --
Net Profit 9.43 55.92 -9.61 -15.6 -21.14 9.57
Equity 603.59 603.59 603.59 603.59 603.59 603.59
EPS 0.02 0.09 -0.02 -0.03 -0.04 0.02
CEPS 0.02 0.09 -0.02 -0.03 -0.03 0.02
OPM % 98.11 360.77 45.85 35.75 15.85 123.82
NPM % 14.12 198.51 -33.79 -71.14 -90.34 9.39

Refer to Figure 1.1 is the graphical representation of Table 1.

Net Profit
100
Axis Title

50
0
-50
1 2 3 4 5 6
Net Profit 9.43 55.92 -9.61 -15.6 -21.14 9.57

Table 1.2 is an overview of the Annual Trends of the Profit And Loss Statements of GMR
Airport Infrastructure Limited from 2019 to 2023.

(in Cr.) 2023 2022 2021 2020 2019

Income Statement
Revenue 101.94 39.06 1,448.60 1,155.10 1,101.04
Other Income 24.15 1 19.48 7.9 47.86
Total Income 126.09 40.06 1,468.08 1,163.00 1,148.90
Expenditure -116.17 -139.74 -2,730.60 -2,593.62 -2,166.80
Interest -116.3 -78.98 -890.71 -892.93 -845.65
PBDT 9.92 -99.68 -1,262.52 -1,430.62 -1,017.90
Depreciation -0.35 -0.91 -21.5 -23.52 -24.49
PBT 9.57 -100.59 -1,284.02 -1,454.14 -1,042.39
Tax -- -58.72 3.86 -24.98 8.08
Net Profit 9.57 -309.78 -1,280.16 -1,479.12 -1,034.31
Equity 603.59 603.59 603.59 603.59 603.59
EPS 0.02 -0.26 -2.12 -2.45 -0.93
CEPS 0.02 -0.51 -2.09 -2.41 -1.67
OPM % 123.82 -53 -25.67 -46.55 -15.64
NPM % 9.39 -793.09 -88.37 -128.05 -93.94

Refer to Figure 1.2 is the graphical representation of Table 1.2

100% Net Profit

50%
Axis Title

0%
1 2 3 4 5 Net Profit
-50%

-100%

Table No. 2.1 is an impression of the Quantified study made between the data available in
relation to quarterly trends of financial results between the peer group.

PARTICULARS GMR INFRA DREAM FOLKS

LTP 53.29 519.65
Change % -0.69 1.73
52 W H/L 54.70/33.35 846.75/348.20
Results (in Cr.) Jun-23 Jun-23
Sales 66.77 266.3
PAT 9.43 13.09
Equity 603.59 10.61
Face Value 1 2
Ratios
OPM % 98.11 7.08
NPM % 14.12 4.92
EPS 0.07 13.62
CEPS 0.07 14.28
PE 761.29 38.15

Refer to Figure 2.1 is the graphical representation of Table 2.1

 Chart Title
50000
40000
30000
20000
10000
0
-10000

GMRINFRA DREAMFOLKS

Table 2.2 is comparative study on between the data available in relation to Annual trends of
financial results between the peer group.
Particulars GMR INFRA DREAM FOLKS
LTP 53.29 519.65
Change % -0.69 1.73
52 W H/L 54.70/33.35 846.75/348.20
Results (in Cr.) Mar-23 Mar-23
Sales 101.94 773.24
PAT 9.57 72.55
Equity 603.59 10.45
Face Value 1 2
Ratios
OPM % 123.82 13.22
NPM % 9.39 9.38
EPS 0.02 13.88
CEPS 0.02 14.55

Refer to Figure 2.2 is the graphical representation of Table 2.2

Chart Title
1000

800
600
400

200
0
Sales PAT Equity

Series1 Series2
Conclusion

In the present turbulent competitive environment the financial analysis is an essential part of
monitoring the business and is an important tool to support the decision making for
stakeholders. Also it provides feedback about the business condition of GMR t and their
development and individual areas of operation.

This analysis is able to identify factors that with the largest stake have caused undesirable
results in the Company. Through prediction models of financial-economic analysis for the
upcoming projects which would enable the company to predict their future development and
possible option for fund raising and treasury management.

Among the benefits of this course project, the financial analysis is focused on various ratio
indicators of activity, profitability, liquidity and indebtedness by analysing the Profit and Loss
Statement and Balance Sheet of GMR Airport Infrastructure Limited. Related proposals
mentioned in this study for weaknesses elimination which were found by financial analysis are
focused on practical use in the business experience.

Please refer to the Financial Results attached that is analysed in order to derive various results
as tabled below. GMR Airport Infrastructure Financial Results.pdf

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

PROFITABILITY RATIOS
PBDIT Margin (%) 34.65 53.49 34.17 38.51 31.91
PBIT Margin (%) 19.07 34.16 9.32 26.07 18.9
PBT Margin (%) -12.12 -18.15 -41.23 -23.31 -45.81
Net Profit Margin (%) -13.83 -26.12 -94.46 -22.36 -43.2
NP After MI And SOA -2.67 -22.24 -78.44 -28.39 -47.33
Margin (%)
Return on Capital 3.64 5.12 0.92 7.45 5.46
Employed (%)
Return on Assets (%) -0.4 -2.75 -5.59 -5.22 -8.86
Total Debt/Equity (X) -40.56 -32.42 -18.78 -11.45 -29.22
Asset Turnover Ratio 0.23 0 0 18.38 18.72
LIQUIDITY RATIOS
Current Ratio (X) 0.98 1.03 1.03 0.75 0.74
Quick Ratio (X) 0.96 1.02 1.02 0.73 0.74
Inventory Turnover 0 0 0 44.9 67.2
Ratio
COVERAGE RATIOS
Interest Coverage 0.99 1.22 0.68 0.63 0.53
Ratios (%)
Interest Coverage 0.99 1.22 0.68 0.63 0.53
Ratios (Post Tax) (%)
VALUATION RATIOS
Enterprise Value (Cr.) 54,361.52 48,408.37 43,593.65 36,186.92 36,345.78
 EV/Net Operating 8.12 10.52 12.22 4.23 4.8
Revenue (X)
EV/EBITDA (X) 23.44 19.67 35.77 10.98 15.05
MarketCap/Net 3.65 4.84 4.12 1.15 1.58
Operating Revenue (X)
Price/BV (X) -30.86 -27.23 -8.55 -3.99 -14.57
Price/Net Operating 3.65 4.84 4.12 1.15 1.58
Revenue
Earnings Yield -0.01 -0.05 -0.19 -0.25 -0.3

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