GMR Airports Infrastructure Ltd
BSE:532754
Earnings Call Analysis
Q1-2024 Analysis
GMR Airports Infrastructure Ltd
GMR Airports Infrastructure Limited, a significant player within the Indian aviation industry, has reported a 40% increase in gross revenue, reaching INR 2,018 crores for Q1 fiscal '24. This noteworthy performance is bolstered by EBITDA soaring by 77% to INR 753 crores, coupled with an enhanced EBITDA margin of 51%, marking a 10% annual increase. At the heart of this expansion is a robust upsurge in passenger traffic, contributing to a net profit after tax of approximately INR 16 crores for the same period.
GMR's key assets, the Delhi and Hyderabad airports, have experienced substantial growth, exceeding pre-COVID levels. Delhi's airport has seen international traffic climb by 35%, while Hyderabad's rose by 33%. This surge has propelled Hyderabad's airport to its highest quarterly passenger traffic ever, crossing 6 million. The initiation of operations at new runways and the pursuit of sustainability goals, including a vision for net zero carbon emissions by 2030, underscore GMR's continuous commitment to aviation excellence and environmental stewardship.
The ongoing fiscal has witnessed GMR undertaking significant infrastructure advances. Key developments include the merger of GMR Airports with GMR Airports Infrastructure Limited and the full operational status of Mopa Airport in Goa with over 1.9 million cumulative traffic. Construction progress at the Hyderabad and Delhi Airports is on track, with expected completion around Q3 and Q2 of fiscal '24, respectively. The notable launch of international connectivity from Mopa to London exemplifies GMR Airports' continuous evolution.
The company is actively enhancing value through land monetization, having successfully completed the process for two hotels and laid the foundation for Bhogapuram Airport. Additionally, GMR is developing retail projects, such as the GMR Interchange at Hyderabad Airport, and has embarked on an SEZ development of a commercial building in Delhi, illustrating its ability to diversify revenue streams and capitalize on real estate assets.
Facing the complexities of the regulatory environment, GMR has experienced mixed results with the TDSAT's verdict on Delhi Airport's tariff determination. Despite challenges, the company continues to maintain its strong airport portfolio, with favorable outcomes from the Supreme Court regarding Nagpur Airport. These developments reflect the company's adept navigation of regulatory landscapes.
Strengthening its position in the industry, GMR Hyderabad Aviation SEZ, a subsidiary of GHIAL, has signed a land lease agreement with Safran Aircraft Engine Services India to establish a state-of-the-art MRO facility. This move is aligned with GMR’s ambition for sustained growth and its mission to build an eco-friendly, sustainable aviation ecosystem.
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Ladies and gentlemen, good day, and welcome to the GMR Airports Infrastructure Limited's conference call to discuss the Q1 FY 2024 results. [Operator Instructions] Please note that this conference is being recorded. We have with us today Mr. Saurabh Chawla, Executive Director of Finance and Strategy. Before we begin, I would like to state that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. Also, recording or transcribing of this call without prior permission of the management is strictly prohibited. I now hand the conference over to Mr. Saurabh Chawla for the opening remarks. Thank you, and over to you, sir.
Good evening, everyone. I'm delighted to welcome our shareholders, analysts and all other stakeholders to our Q1 fiscal year '24 earnings call. I really appreciate you joining at this late hour. Before we delve into our company's quarterly figures and achievements, I think it is essential to situate our performance within the overarching narrative of India's infrastructure, particularly the aviation sector and broader economic context. Post pandemic, our economy has shown signs of resilient recovery. India's economic trajectory is promising, characterized by steady growth rates, enhanced manufacturing and a favorable investment climate. Notably, infrastructure remains central to this growth story, acting as both a driver and beneficiary. India's thrust towards infrastructure development isn't just a policy choice, it's a strategic move to catalyze holistic development. With programs like Atma Nirbhar Bharat and National Infrastructure Pipeline, the nation has showcased its ambition of stringing investments and innovations.
Our airport projects have been pivotal. Beyond near transport hubs, we see them as India's gateways to global commerce and culture. Our commitment to redefine the traveler experience remains undeterred. Technology integrations, sustainability initiatives and passenger-first approach have not just elevated user experience, but also set new industry standards. Amidst this macro backdrop, our journey over the past quarter has been both strategic and transformative. We've leveraged technology, sealed key partnerships, initiative to simplify the corporate structure through the merger process and continue to enhance operational efficiency across all projects. Like every growth journey, ours hasn't been devoid of challenges. From industry disruptions to regulatory changes, we have navigated a diverse set of obstacles. Yet every challenge has unveiled an opportunity, be it in terms of innovation, new partnerships and process optimizations. We are excited and fully equipped to harness these prospects, amplifying our growth and contributions. With this note now, I would like to briefly run you through our Q1 fiscal year '24 performance. We began the new fiscal year first quarter with a healthy growth on operational and financial parameters. GMR Airports Infrastructure Limited's gross revenue increased by 40% year-on-year to INR 2,018 crores in Q1 fiscal '24, driven by strong growth in traffic at our operational airports. EBITDA increased by 77% to INR 753 crores with EBITDA margins at 51%, up 10% year-on-year, reflecting a strong growth in the business and underpinned growth drivers. Net profit after tax from continuing operations of about INR 16 crores in Q1 fiscal '24. On the operational front, we are seeing strong momentum in traffic and expect this upward trend to continue further. In Q1 fiscal '24, overall pax traffic increased by 26% Y-o-Y to 27 million passenger traffic, and this has surpassed the pre-COVID levels, that is, Delhi and Hyderabad Airports have crossed 14% and 12% more in Q1 fiscal year '20, respectively. During the quarter, in addition to healthy growth of domestic traffic, international traffic has also increased substantially. Delhi and Hyderabad Airport international traffic increased by 35% and 33%, respectively. And as continued growth trajectory, Hyderabad Airport handled highest quarterly passenger traffic in Q1 fiscal '24 and crossed the 6 million passenger mark. Now I would like to highlight the key developments of the quarter. We are steadily progressing on the merger of GMR Airports with GMR Airports Infrastructure Limited, which will ultimately enhance the shareholder value. In this context, varied steps have been achieved paving the way further for the entire merger completion within the expected time line of fiscal year 2024. We have already received the CCI approval during the quarter 4 of '23. And recently, we received a no objection to the merger from RBI and both the stock exchanges. Now the merger application is expected to be filed shortly with the NCLT. Significant progress has been achieved with respect to capacity expansion in our Delhi, Hyderabad and Crete Airports. As of July 31, 2023, Hyderabad and Delhi Airports achieved 92% and 93% of CapEx progress. Delhi and Hyderabad Airports are targeted for completion in Q3 fiscal '24 and Q2 fiscal '24. A brief glimpse of the same is available in our investor presentation for the quarter. We expect the new tariff regime at Delhi to be enforced by April 2024. We achieved historic milestone in Delhi Airport, inaugurated the fourth runway and the Eastern Cross Taxiway on July 14, 2023. Delhi Airport becomes the only Indian airport with 4 operational runways and elevated Cross Taxiway, which will aid in Delhi becoming an attractive hub along with our sustainability journey to becoming a net zero carbon emission airport by 2030, reinforcing its preeminent position in the Indian aviation sector. Mopa, or Goa Airport, is also fully operational. Domestic flights had already commenced on January 5th with IndiGo, Akasa, SpiceJet and Vistara are now operational and expanding their footprint. International operations also started on July 21 with Air India operating international flight from Mopa, Goa to London Gatwick 3 times weekly. Cumulative traffic at Mopa Airport has already crossed 1.9 million mark as on July 31. In the month of July, Goa Airport welcomed 2,000 international passengers. We're also expecting the new tariff regime at Mopa to be enforced in Q3 FY '24. On the regulatory front, Telecom Disputes Settlement and Appellate Tribunal, TDSAT, has pronounced its order on July 21 with respect to our appeal preferred by Delhi Airport against the orders passed by Airport Economic Regulatory Authority, AERA, towards tariff determination for Delhi Airport for the second and third control period. TDSAT in its order has allowed certain claims of Delhi Airport and has disallowed certain other claims. The matter is still to be -- to achieve its finality. Hyderabad Airport on June 6 announced the divestment of about 818,000 square feet warehouse facility at Hyderabad Airport to ILP Core Ventures Private Limited, a step-down subsidiary of Indospace Core Private Limited. The step transaction reinforces the GMR Group's capabilities in developing world-class institutional-grade real estate project assets and generating value through successful exit. GMR Hyderabad Aviation SEZ, a 100% subsidiary of GHIAL, has recently signed a land lease agreement with Safran Aircraft Engine Services India Private Limited, a subsidiary of Safran, a global leader in aircraft propulsion and equipment, space and defense markets. As per the agreement, GHASL will lease land to Safran to operate engine MRO facility for LEAP turbofan engines, spread over 23.5 acres of land parcel within the SEZ area of GMR Aerospace and Industrial Park. This facility will occupy around 36,500 square meters of built-up space. The construction of the facility will commence in September and is expected to be handed over in December 2024, with operations set to commence in 2025. The facility in Hyderabad will be the largest MRO center in Safran engines -- aircraft engines' network. On airport land development, in Delhi Airport, we have initiated SEZ development of commercial building of about 6 lakh square feet in the Gateway district of Aerocity. In Hyderabad Airport, it has initiated development works for GMR Interchange, which is a retail project. In Mopa, Goa Airport, land monetization processes for 2 hotels were successfully completed with letters of intent to award issued to the 2 highest bidders.
In Bhogapuram Airport, foundation stone of the airport was laid by the State Chief Minister on May 3, 2023. EPC bid evaluation is currently under process. R&R processes have been fully completed. Grant of right of way over airport land from the authority is under process. Financial closure is expected. It is in advanced stage and expected soon. The sanction of a lead bank is already in place. Nagpur Airport, review petition was filed by Ministry of Civil Aviation in Supreme Court challenging the earlier Supreme Court order. However, the petition was dismissed by the Supreme Court in its order dated May 11, 2023. We expect execution of concession agreement at the earliest. On Medan Airport, on year-on-year basis, traffic is up 62% to 1.8 million passengers in Q1 fiscal '24. Currently, 18 domestic and 6 international destinations are connected in Medan, and we're working steadily towards adding new destinations. We have continued our rigor on the ESG front at each of our airports. GMR and its strategic vision of nation building through future ready sustainable airports ensures that the principle of sustainable development is fully imbibed in unique and innovative infrastructure development or day-to-day operational activity, which we undertake. In this direction, Delhi Airport added another milestone in its sustainability journey of becoming a net zero carbon emission airport by 2030 by inaugurating the fourth runway and the Eastern Cross Taxiway. While the 4.4 kilometer long runway will enhance the operational efficiency at Delhi Airport, the Eastern Cross Taxiway will help lessen aircraft emissions and additionally reap in several other benefits inter alia, reducing about 55,000 tonnes of carbon dioxide emission, which is equivalent to planting about 15 lakh trees. Hyderabad Airport too continued its sustainability journey and transitioned to 100% sustainable green energy for its energy consumption at the airport and across its ecosystem, which will reduce its carbon footprint by about 9,300 tonnes of carbon dioxide annually. Delhi and Hyderabad Airports have maintained an ASQ score of 5 during this quarter. In conclusion, as we move ahead in 2023, we are not only just geared to navigate the challenges, but also to seize the myriad opportunities that the evolving Indian and global aviation landscape presents. I express my deepest gratitude to our investors, partners and team members for their continued trust and support. Together, we are forging a part that is exemplary in the analysis of Indian aviation journey. Now I would like to open the floor to Q&A. Thank you so much.
[Operator Instructions] The first question is from the line of Mohit Kumar from ICICI Securities.
My first question is on the TDSAT order, which was very, very favorable to Delhi Airport. My question is, what is the status and way forward and what could it possible for financial implications? Any color would be helpful.
G. R. K. garu, would you like to answer this?
Yes, sir. I think TDSAT order has been received. I think as we explained that it has to reach the finality. In the meantime, since DIAL is going to file the application before the control period and which is expected to file in the third quarter of this financial year, we'll incorporate the TDSAT order. If there is any -- if there is no stay from the Supreme Court in the meantime, then we'll incorporate and then file the application. The quantums are being worked out, and it will be very difficult to state currently what will be the quantum of the increase that we are expecting. So has DIAL has filed the petition in the Supreme Court against the order? No. DIAL -- see, because there are certain favorable orders, but some are not favorable. We are examining these issues not favorable, whether we should go for appeal or not. The legal is examining that aspect. What I'm trying to explain is that there are so many stakeholders who are available who can go to the Supreme Court because the next appeal lies with the Supreme Court. Either airlines can go or any other person is getting affected because of the tariff, they can go to Supreme Court. All stakeholders are permitted to appeal.
Understood, sir. My second question is, you raised money of INR 12 billion via NCD of Delhi Airport and INR 20 billion at Goa Airport, if I'm not wrong. Was both the paper was for refinancing or one was for the expansion and the other was for refinancing of the existing debt?
INR 12 billion what Delhi Airport has raised in the month of June is as part of the NCD expansion that is happening now. With that return, from the entire project cost till today approved by the Board is about INR 11,550 crores has been fully paid up. As far as -- that is why as far as DIAL is concerned, Goa, all right, now we are in the process of thinking of going for refinancing. Otherwise, we have not raised any money as far as Goa is concerned in the last quarter.
Understood. Sir, my last question, so how was the traffic in the last 45 days? Are you seeing the same momentum continuing?
The traffic, you are talking about Goa or other airports?
No, no, no, traffic of Delhi and Hyderabad...
They are doing very well. Both of...
Let me take this question. The traffic is as per our forecast, internal forecast. Obviously, there is seasonality in traffic because the second quarter usually is a little bit subdued. But I would say that the delta over the previous year continues to be maintained.
[Operator Instructions] The next question is from the line of Sai Siddhardha Pasupuleti from Kotak Securities.
Congratulations on a very good set of results, sir. So my first question would be your retail and non-aero revenue per pax for Hyderabad Airport have been a bit volatile over the past few quarters. So if you could explain us any seasonality effects as in how to think about a stable level of spending for the same?
G. R. K. garu, you want to take this?
Yes, I can take it. As far as Hyderabad is concerned, actually the non-aeronautical revenue is doing very well. There was some fluctuation between the fourth quarter and first quarter. Because in the fourth quarter, some of the revenues, especially Duty Free, was getting at highest revenue share about 35%. In the first quarter, we moved down to 23% because in Greater Hyderabad Duty Free, the revenue share is depending upon the turnover which they achieve. If they achieve more than INR 65 crore, then only they come into 35%. That's why in the last quarter of the Hyderabad, they were higher revenue, Hyderabad Airport. The second point is that some of the rent yielding assets have been transferred to some other companies and the money has been raised by Hyderabad Airport. As a result, there were some lesser revenue coming from the rentals in case of Hyderabad Airport. That is where there is a slight volatility or difference between fourth quarter to first quarter. Otherwise, Hyderabad Airport is doing very well, and the spend per passenger is also good. Only in case of the Duty Free, slightly fallen, but it is now picking up much better. I think we will see a good momentum going forward.
Yes. So just a second question following up. Your other expenses have also been quite volatile with first quarter spends lower than the third quarter. So if you could share some reasons on the same and also why the associated profit is growing at the pace as it is growing at the moment?
In case of Hyderabad -- you want to take, Saurabh, or can I explain?
Why don't you go ahead?
Yes. In case of Hyderabad in the fourth quarter, there were some exceptional expenditure has been incurred. There were the write-off of the amount receivable from Yes Bank about INR 63 crores. And also, we did the refinancing of the bond, where we have made -- the hedging has been canceled and the notional loss has been booked and some legal expenses have also been booked. As a result, in the fourth quarter, the Hyderabad expenditure was very high. Whereas whatever we have incurred in the first quarter is now the standard expenditure what we have incurred. That is the reason why in the first quarter versus third quarter, there was a fall in the expenditure in case of Hyderabad Airport. And going forward, we are expecting that we'll be maintaining more or less the first quarter expenditure. We are now very cautious about booking every expenditure properly over a period of time. So we will not see such type of differences going forward.
So this is pertaining to all the assets, sir, or...
All are exceptional expenses incurred in the fourth quarter.
So Mohit (sic) [ Sai ], maybe we can quantify those. Or if you want, we can highlight that aspect. [indiscernible], you want to do that?
Yes. So these were some of the one-offs, which we have recorded in the previous quarter, which is some provision we have made for the receivable to the extent of INR 65 crores and some loss on settlement of derivative instruments we have recorded and some loss on discarded assets we have recorded about INR 20 crores and some ForEx loss on the FCCB, which is around INR 27 crores we have recorded. And there were some closing provision we have made for some of the expenses related to the arbitration, which is approximately INR 100-plus crores in the financial statement of March 2023. So these were not there in the June quarter.
So I think just as a guidance, we are basically back to our normalized levels, and you should expect similar levels to continue.
[Operator Instructions] the next question is from the line of Bharat Jain from ICICI Securities.
Can you tell us the numbers for Delhi Duty Free, the top line and the profit in the quarter?
Rajesh, would you -- Rajesh, you want to take this?
Saurabh, I don't have the number readily with me.
Okay. Just a second, we'll give the number.
So the top line is INR 448 crores for June quarter, and it was INR 421 crores in the March quarter.
Okay, sir. And profit?
And the profit, it's -- so profit and loss before tax, it is coming INR 86 crores in the current quarter and previous quarter, it was INR 84 crores. And at PAT level, it is INR 64 crores and INR 98 crores in the previous quarter. So previous quarter, we have recorded one exceptional item, which is on account of the GST refund.
Got it. And sir, can you give us some color on how you are planning to increase the rate of SPP spend in Duty Free?
Rajesh, this is...
Yes, sure, sure, sir. So Bharat, in terms of our plan to expand increased SPP, there are various factors we discussed in the previous calls also. Primarily, one is you bring in the right kind of offerings considering the mix of traffic what you have. Secondly, like what we have done recently in Hyderabad where we have seen almost 20% jump in the SPP, where we have expanded the duty free area. So these are the 2 key factors which contributes. And naturally, the other one is linked to the inflationary and the price-linked factors, which increases the SPP. So these are the 3 time factors for -- which goes -- undergoes for increase in SPP.
Okay, sir. Understood. Sir, just one clarification. The cosmetics -- do we tend to earn more margins on cosmetics?
Generally, on perfumes and cosmetics, when you compare with the liquor, the margins are slightly lower -- is slightly lower. I won't say very significantly lower, but especially when you compare with the liquor, yes, those are slightly lower.
The next question comes from the line of Sai Siddhardha Pasupuleti from Kotak Securities.
So I just had one final question. So the associated profits have been growing quite year-on-year as well as quarter-on-quarter. I wanted to know the reasons associated with that. And also the interest cost has come down on a Q-o-Q basis for Delhi and Hyderabad Airports. So what is the reason for decline would also be helpful.
Yes. Actually, in previous quarter, there was a loss we have recorded for the Bajoli Holi. So during the quarter, the performance of the Bajoli Holi has been improved. So it's mainly because of that, the profit has been improved. And other association JVs are also performing better in the current quarter.
In interest, there is no reduction as such.
The next question is from the line of [ Sriram R. ] , an individual investor.
So I just have one question. So this is regarding the Noida Airport, which is coming up in FY '25, '26. I mean what sort of impact that would have on the Delhi side?
So honestly speaking, given the growth that we see in the aviation sector, over a period of time, we would need more airports in the country. Noida will be a welcome change. It will take a lot of burden off of the Delhi Airport. In our strategy, we have always seen Noida taking our Tier 2 traffic away and some part of the cargo traffic away. But Noida going live is still 2 to 3 years down the road, by which time we would be hitting our capacity levels, and it will be a good time for us to concentrate on more high-yielding traffic rather than low-yielding traffic. So honestly speaking, we'll not have too much of an impact as long as India keeps growing at around 6% to 7% on a secular basis.
The next question is from the line of Aditya Mongia from Kotak Securities.
My question is linked more to the EBITDA reported in third quarter -- in the current quarter, which is about INR 7.5 billion. Now this is meaningfully higher than the run rate in the 9% in FY '23 kind of time period on a quarterly basis. Potentially almost double of the quantum seen last year in the first 9 months on a quarterly basis. I wanted to kind of confirm and clarify is there any one-off inside the first quarter trend of EBITDA? Or should this be a sustainable number going forward?
G. R. K. garu, do you want to take this or should I take it?
Yes. I think as far as the financials of this quarter are concerned, there are no one-off as such. It is an actual real performance. The revenues have substantially gone up. And the increase in the profitability and turnover is mainly because in case of Hyderabad Airport, in addition to the traffic going up, the tariffs have also gone up compared to the previous year. This year, the tariffs are almost 1.6x. As a result, you've got a better turnover and that will continue for the next 2 years, until they go back into the previous one. Otherwise, there are no one-off anything this time and they're all very clear, and we are expecting the same type of performance going forward. And you may add anything there, Saurabh.
Yes. So in addition to what G. R. K. garu just said on the Hyderabad, there's also increase in the CPD revenues of DIAL on account of new contracts with Bharti Realty. Yes, on account of taking over the new land parcels in Aerocity. So basically, that's the booking that has happened, which has increased the EBITDA levels.
Understood. I mean on the aspects that you have said, the first one, which is Hyderabad Airport's aero tariffs going up. Is it fully reflected on the impact of -- in fact, both the factors that you said, which is Bharti Realty and Hyderabad Airport's aero tariff going up, are they kind of fully reflected in the quarter gone by? Or would we see a further impact on the positive price increment?
As far as the increase in the tariffs are fully reflected in case of Hyderabad Airport, Bharti, the second phase of the 2.13 million square foot, which we have taken over. And the current quarter revenues have already been booked and they will continue to be there. So there is no change as such.
Understood. And in case of Hyderabad aero tariffs post the 2-year period that you were suggesting, do we envisage tariffs coming down in a base case scenario? How do we see through the numbers of...
Basing all the current tariff structure will be approved by the TDSAT, which is now under implementation. '23-'24, '24-'25 and '25-'26, so now this tariff will remain almost the same. And in '26, again DIAL has to file another application for both control period. And basing all the -- that point of time and the CapEx involved in everything, again, tariff determination will happen. It will be very difficult to guess what will be the tariff before the control period. Otherwise, that's 2 to 3 years, the run rate will continue to be the same.
Understood. And since there are several aspects because of which Hyderabad EBITDA is actually going up as you suggested through the call. Is there a sense of any kind of dividends that will be distributed away from that airport?
Basing on the current covenants under the bond covenants, right now, this financial year appears to be difficult, but next financial year onwards, then Hyderabad Airport will be in a position to declare dividend.
So Aditya, basically, we are on path like I highlighted earlier also that as we continue on our path of generating free cash, effort will be for dividend flows by the airport asset companies to the platform. And of course, the merger of GAL into GMR Airport Infrastructure Limited, GAIL, would be very helpful to upstream those dividends. First off the block will be Hyderabad whether it happens during this current year or next year, I think let's just wait it out. We prefer not to give any guidance to the markets on that. Performance itself will demonstrate it.
Maybe the final question on my side, if I may, again, related to Hyderabad Airport because interested things are happening. Is there a case of view of taking out the take of the government entity over here? And B, as we have seen in case of Delhi, is there a case of the CGF issue turning out to be in our favor and from a regulatory perspective will be benefiting?
First, what is the first question, sorry?
So I think 26% stake is still held by the government entity over here, right?
Yes...
Aditya, there is no proposal of the government to sell its stake. There's nothing which is formally there. So we really can't react to any speculative thought process. If there is a proposal in place, obviously, we will look at the merits of it and ensure that we participate in it. Having said that, our overall philosophy, Aditya, is to be capital light. So unless and until there's a good arbitrage in the value, why would we participate in it? We would prefer to partner with some of the financial majors who may come and participate to buy out that stake. But there is no current proposal by any government authority to sell their stake, whether in Delhi or Hyderabad or any other airport across the country.
And any option from any regulatory positives that are coming from Hyderabad, especially the CGF issue time lines and probability you could share?
The appeals are pending before the TDSAT. Now the Hyderabad Airport hearings have been completed, we got the order. TDSAT is now hearing the DIAL case, it's going on. So most probably, they will take it up in the queue than Hyderabad. So CGF is being fought before them, and we are actually -- and we continue to agitate before the TDSAT for a favorable order.
[Operator Instructions] The next question is from the line of [ Paras Lasa ] from OM Investments.
Yes. Once the capitalization of the current expenses done, how much interest cost and depreciation will go up for the Hyderabad Airport as well as the Delhi Airport?
In case of the Delhi, the depreciation, which is currently about INR 500 crores, can go up to almost INR 1,000 crores. And interest can be -- once we complete the entire capitalization, the interest amount could be in the range of about INR 1,400 crores.
In the case of Hyderabad?
In case of Hyderabad, the current depreciation is about INR 250 crores to INR 300 crores, so will go up almost double because of the INR 6,700 crores capitalization. Interest cost will be around INR 800 crores.
Ladies and gentlemen, we have no further questions. I would now like to hand the floor over to the management for closing comments. Over to you, sir.
Thank you. Thank you, everybody, for joining on our Q1 call at this late hour. I appreciate your questions. The team, of course, is available off-line to answer any other specific queries you may have on the data that we have published so far and any strategy questions that you may have as we go forward. Thank you so much. Have a good night.
On behalf of GMR Airports Infrastructure Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.