India’s GMR Infrastructure has disclosed that its airports segment recorded a 3.4% increase in its profit to Rs3.65 billion ($54.7 million) for the third quarter ended 31 December 2018.
GMR Airport’s revenue over the three month period rose 19% to Rs13.6 billion.
Meanwhile, the airport’s business saw its profit decline 21% to Rs10.3 billion over a nine-month period. Revenue also fell 7% to Rs39.2 billion.
In an investor presentation, GMR describes its airports segment as its main growth engine, on the back of rapidly growing passenger volumes, and the potential for its airports to expand further.
The company says the Indian market has a “large potential for expansion,” as the government looks to privatise more airports. Its Delhi Indira Gandhi International airport unit has the capacity to expand to up to 119 million passengers per annum, up from the current 66 million. GMR also plans to develop Delhi as a cargo hub.
Hyderabad Rajiv Gandhi International airport on the other hand can expand to cater to 80 million passengers annually, up from the current 12 million. Goa International airport will be able to accommodate 33 million passengers on an annual basis, up from the present 7.7 million.
GMR’s results disclosure builds on an earlier announcement made in February that it is examining a spin-off of its airports unit.
The company said spinning-off that unit would allow it to reduce its debt, and give the business access to more capital for its next phase of growth.