© 2024 Alpha Spread Limited. All Rights Reserved.
www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
You don't have any saved screeners yet
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Ladies and gentlemen, good day, and welcome to GMR Infrastructure Limited's conference call to discuss Q2 FY 2021 results. [Operator Instructions] Please note that this conference is being recorded. We have with us today Mr. Saurabh Chawla, Executive Director, 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 risk 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.
Thank you so much. Good afternoon, ladies and gentlemen. I welcome you all to the second quarter of fiscal '22 earnings call. I hope everyone on the call and their families are safe.As you know, economic activity indicators have peaked -- had peaked in March '21, but they took a hit during quarter 1 fiscal year '22 due to the second COVID wave. However, second COVID wave has receded much faster than what was anticipated. Economic activities and businesses are now back as COVID daily cases are now significantly down below the 13,000 mark number against the second wave peak of almost 4 lakh cases a day. This augurs well for our businesses during the quarter.Before briefing you about the business performance, I would like to highlight key focus areas, which have kept us busy during quarter 2 fiscal '22. Firstly, on demerger, we have received all approvals from the financial creditors and shareholders. Rest of the steps in the demerger process are procedural in nature. We expect the final order from NCLT soon, most likely by end of December '21 and fixing a record date of GPUIL listing and subsequent listing on the stock exchanges by quarter 4 fiscal year '22.Secondly, we have made significant progress on our CapEx programs. Delhi, Hyderabad and Goa Airports have achieved 50%, 67% and 44% completion as of October 31, 2021. In Goa, we are targeting to achieve a COD by mid-March of '22.Thirdly, we have executed industrial partnership agreement with Groupe ADP. This is a significant step into building the world's largest airport alliance to welcome passengers and leverage both the group's expertise to continuously improve operations.Fourthly, on the liquidity raising and cost-saving initiatives, we have completed the divestiture of Kakinada land parcel and the port. From this transaction, we received the first tranche of considerations, which is about INR 1,700 crores out of a total INR 2,700 crores.In order to cater to rising demand, we have resumed operations at Terminal 2 in July '21 and Terminal 1 on October '21 at Delhi Airport. We had earlier closed these terminals to save costs amidst lower passenger footfalls due to the first and the second COVID wave.We also agreed to restructure the transaction with Bharti Realty for 5 million square feet, primarily dividing into 2 phases: Phase 1A of 2.73 million square feet and Phase 2 or 1B of 2.16 million square feet. Lease rentals for the Phase 1A effective from September 1, 2021, Phase 1B is expected to be effective by fiscal year '23. We have received significant amounts from this transaction prior to September 30.In order to improve the performance of the Power business, we have entered into a PPA, with Gujarat State Electricity Board for 150 megawatts in Warora. We've also pursued resolution of receivables at Warora and Kamalanga and received favorable order from APTEL with respect to the Bihar Discom.Coming to the business front, GMR's businesses have recovered significantly post second wave of COVID. I want to first talk about the airport business, which contributes significant numbers who are revenue and EBITDA. As highlighted earlier, traffic has rebounded quickly post second COVID wave than the initially anticipated, and it is on a fast pace recovery path.In Delhi Airport, domestic and international daily average passengers have grown around -- have turned around and has reached 81% and 42% during the week ended November 7. In Hyderabad Airport, domestic and international daily average passenger has reached 73% and 50% during the week ended November 7.Cargo business continues to be resilient and is now above 100% of pre-COVID level for both Delhi and Hyderabad airports. It is encouraging considering Government of India has imposed curbs on the capacity for airlines, which were at about 50% in June 1, later revised to 65% from July and 72.5% in August. Now the government has lifted the capacity restrictions for all domestic flights, and we are now operate -- they can operate up to 100% capacities.International destinations and frequencies were also increased during the bubble arrangements and more destinations are expected to be added in the near term.Passenger confidence to travel is on the rise, with a decline in COVID cases, increased pace of vaccination and relaxation of the testing norms. Passenger profile mix is also shifting with increased passenger travel from Tier 2 and Tier 3 cities versus metros, friends and family or leisure travel versus corporate travel. Even corporate travel has also recovered to about 50-odd percent levels compared to pre-COVID, and corporate travel is gaining momentum in the near term, as executives have started to travel for meetings and conferences.On the international side, there is more and more structural shift happening on the nonstop flights. We expect the traffic to gain further momentum with reducing trend in COVID cases, lifting of government restrictions on the airline capacity and increased pace of vaccination.India's daily new COVID cases are now below 13,000 and vaccination pace has picked up, where almost 1 billion doses or more than 1 billion doses have been given as on November 10, 2021.Metro cities, which are core to our business, have recorded over 95% vaccine coverage. More states in India have lifted travel restrictions with COVID cases receding and various states have also lifted RT-PCR testing requirements for fully vaccinated citizens. Globally, too, weekly COVID cases have declined to 1.3 million as of November 8 versus peak of 5.7 million in April 2021 as vaccination drive was in -- is in a full swing, which will further boost international traffic. Globally, about 7.3 billion vaccine doses have been administered so far. Significant part of the populations in various countries are inoculated with at least 1 dose. U.S. is about 66%, U.K. about 74% and 79% in Canada.Air bubble arrangements will continue for next few months, aiding recovery of international traffic. Currently, air bubble arrangements are with 28 nations, including U.S., U.K., Canada, Germany, France, UAE, et cetera. International countries have also started to ease travel restrictions. For instance, U.S. has lifted travel restrictions for fully vaccinated travelers. Far East countries, especially Singapore, Australia, Thailand are now opening up for fully vaccinated passengers. U.K. is set to lift travel restrictions for passengers vaccinated with WHO listed vaccines. While Covishield vaccine is already approved by most countries, Covaxin has recently received WHO approval. U.K., including 96 countries will start accepting Covaxin. This will enable more Indians to travel outside India.Fleet addition by major Indian airlines, takeover of Air India by Tata, entry of new airlines including restarting of Jet Airways will aid expansion of the operating capacity. Financially strong airlines will aid for further growth in the future.We anticipate domestic traffic to reach pre-COVID levels by end of this current fiscal year '22 and international by end of fiscal year '23 in our Indian airports.On the energy business, power demand and coal supply are improving as the lockdown is easing up. Kamalanga clocked the best operational performance in half -- first half, with a PLF of 82%. PLF improved to 90% in October and 96% in November as we speak.Warora's PLF of 51% in first half was impacted by lower supply of linkage coal from the mines, lower exchange rates and delayed realization from Discoms. However, post first half, PLF has improved to 66% and 89% in October and November, respectively, due to better co-availability of coal.On Kamalanga, we've also received a favorable order from APTEL. As per the APTEL order passed in August 6, all amounts due and payable to Kamalanga by Bihar Discom due to various change in law events shall be paid along with the carrying cost in accordance with law. Kamalanga is entitled to recover expenditure involved in procurement of alternate coal due to shortfall in domestic coal supply corresponding to scheduled generation pertaining to Bihar PPA, thereby restoring Kamalanga to the same economic position as before, as if no change in law event had occurred. Bihar Discom has filed an appeal in the Supreme Court against APTEL order and appeal is currently pending with the Supreme Court. It is yet to be the listed for admission.PT GEMS is truly a gem in our portfolio today. Performance continues to be strong in this mining business despite volumes being impacted by unseasonal rains.EBITDA margins was up from USD 5 per tonne year-on-year to USD 9 per tonne in quarter 2 fiscal year '22, driven by a 42% Y-o-Y increase in realizations. GEMS has paid a record dividend of USD 180 million in first half of calendar year '21. Subsequently, it has also paid a dividend of about $60 million during August of '21. GMR, as you know, has 30% stake in this mine company.On the highway business, Hyderabad-Vijayawada expressway traffic increased by 27% year-on-year to about 10.4 million vehicles during quarter 2 fiscal '22 period. On quarter-on-quarter basis, traffic has increased by 24% in quarter 2 of this year.Toll at Ambala-Chandigarh Expressway has been suspended since October 12, 2020, due to the farmer agitation. In this regard, GMR Ambala-Chandigarh expressway has declared a force majeure event under the concession agreement and has notified NHAI. As per the concession agreement, GMR Ambala-Chandigarh expressway is entitled to compensation for this force majeure event by way of extension in the concession period, reimbursement of O&M costs, et cetera. Claim for the force majeure approved 31st March 2021 have been filed and Ambala-Chandigarh has received part payment from NHAI. Balance claim amount is under verification and is expected to be received in due course.On the status of arbitration award on Hyderabad-Vijayawada project, the sole arbitrator has reserved its findings on the quantification of claims under change in law and is expected to publish his report on the claim quantification by end of this quarter.On the Dedicated Freight Corridor project, construction work has picked up pace. As you know, GMR, along with its partner, SEW Infra has been executing an EPC contract to construct a part of the eastern corridor. That is 181 kilometers of Mughalsarai to New Karchana in UP and 236 kilometers of New Karchana to New Bhaupur again in UP. Around 76% of package 201 and around 89% of package 202 have been completed.I would also like to briefly touch upon the best practices and recognitions received on the ESG front by GMR Group. On the airports front, Delhi Airport has won prestigious awards of National Energy Leader and Excellent Energy Efficient Unit at the 22nd National Award ceremony for excellence in energy management organized by the Confederation of Indian Industry, Green Business Center. Hyderabad Airport successfully renewed the ACI, Airport Health Accreditation Program for the year '21, '22 and has also commissioned its second 5-megawatt solar power plant in July of '21.On energy business front, some of the safety performance highlights are: Kamalanga plants lost time injury frequency rate and the lost time injury severity rate of 0.00 continues in quarter 2. Same goes with Warora. Both plants expanded foot steps towards sustainable ash utilization by sending byproduct to cement manufacturers and big manufacturing through railway rigs. Ash utilization achieved in both plants is more than 100%.GEMS was also awarded as one of the best of the best top 50 companies in 2021 by Forbes Indonesia. President Director of the company received TOP Leader on CSR Commitment in 2021.The presentations with all these informations and all financial numbers are already available with you. If not, it can be downloaded from our Investor Relations section of our website. We are available to respond to your questions on this call and also off-line post the call.I would like to now open the forum where my colleagues for the Corporate Finance and the businesses, the sector CFOs can answer your queries. Thank you so much.
[Operator Instructions] The first question is from the line of Apoorva Bahadur from Investec.
Congratulations on [indiscernible] demerger. Sir, now that we are so close to the event, can you please share what is the plan for splitting the corporate guarantee, which we have given for Rajahmundry? So how much between airport and non-airport businesses?
So as you are aware, Rajahmundry restructuring happened a few years back, right? And corporate guarantee is on GMR Infra for the nonsustainable portion of it. And this guarantee will continue, both on GMR Airports and also on GMR non-airports after the demerger. This shall continue.
Sir, for the full amount on both?
Yes. So naturally, from a credit perspective, the first recovery goes to the entity which owns the business directly. But yes, as a credit enhancement, the GMR Airports guarantee will continue.
Okay. Sir secondly, on this FCCB, which has not been converted yet, so how should we look at the split of debt and then the obligation of conversion of shares between, again, both airport and non-airport businesses? So basically, how much could be the potential dilution in the airport business because of FCCB in the future?
So it's a very simple math on this. You should assume from -- if you were to assume on a fully diluted basis, you can assume FCCB to be fully converted and the same proportion allocated to both the airport and the non-airport. As you're aware, this is a vertical demerger. So there is no specific allocation, it's the same proportion of shareholding that the FCCB holder will get on both the sides of the businesses if they have converted the whole instrument. That's how you should take it...
Okay. And sir, in case we continue with the debt servicing like we do and there's no conversion, the debt split would be because I believe most of the FCCB went towards non-airport debt?
Correct.
So the debt spilt, how much will that be between airport and non-airport?
Suresh, you want to highlight this aspect?
So since a large part of that debt actually is going to go towards the power sector and other businesses and airport sector would be minimal, so to the extent of INR 150 crores actually would come to the airport side. These are like numbers that we have actually gone through in a pro forma financials. And the final numbers actually will wait till the auditors approve of it. So most likely around INR 150 crores and rest of it goes to the power sector.
Okay. So only INR 150 crores of debt, but full dilution potential, got it. Okay. Fair enough. And sir, on this Bharti Realty deal, I understand that because of COVID probably the time lines changed. I just wanted to know the security deposits, which we have received for the overall first phase, that remains untouched, right, despite the delay in this second -- so when we start payment for that?
Yes. [indiscernible], you want to highlight this?
Yes. As far as the Bharti Realty is concerned, [ we posted a 4.89 million, ] which we have contracted in February 2019, that has been negotiated, is now made into 2 stages, 2.73 million now and 2.16 million in April 2023. So 2.73 million only we have received the payment. If you are talking about the second tranche as an original of another 5 million square foot, now that is not there in the picture right now.
Okay. So that's Phase 2 of the deal initially is not there in the picture anymore?
I mean, there is not much discussion on that. But the price which they are having after 5 years, I mean on completion of the first deal that is -- that has not been renegotiated.
So just to clarify, the option for the Phase 2 continues with Bharti. So it's a total contract of 10 million. First, 5 million has been divided into 2 subphases. The balance, 5 million, that option continues with Bharti.
Okay. Okay. And the security deposit for the first phase was received in full?
Yes. And there is security deposit as well as the advanced development costs, including the annual license fee for 1 year has been full received.
Okay. And sir, what impact does this have on our annual CPD rentals now? Because I believe we were accounting for the full payment?
Yes, we have accounted the full payment. But annual fee anyhow, we have not made any provision in the books because of the state which we are enjoying from the Delhi High Court.
Right. Okay. Fair enough. Sir, just 1 more question, if I may, then I'll get back into queue probably. And on this -- this is on the force majeure issue on revenue share with Airport Authority of India. So just wanted to check what is the total amount which is under dispute right now?
There is no dispute. I mean, the amount which has not been paid till date is about INR 720 crores.
Okay. Just INR 720 crores, sir?
Around INR 720 crores, INR 730 crores, that's what we have not paid till today.
The next question is from the line of Mohit Kumar from DAM Capital.
Congratulations to the team on getting almost all the major approvals on demerger. Sir, my first question is on the couple of monetization plan, which we have been talking about in the recent past. First PT GEMS infrastructure, is there something at works right now given that the price they've moved up, it is one of the most profitable venture right now.Second, Krishnagiri SEZ, when you say a substantial amount of land is getting into where we are into some kind of negotiation, what is the kind of time line we are looking at monetizing roughly half of our land parcel? Is this something we can expect by the end of FY '22, all the land parcel that you mentioned, the entire thing can be closed by end of FY '22?And thirdly, on Warora, say, 150-megawatt you have tied up, is this a short term or long term?
So I'll answer the PT GEMS question first. Yes, we are always open to any offers that we receive to monetize that asset. As you are aware, that asset is doing extremely well. There is interestingly coal shortage in Asia. So we are open to any possible monetization of our share or actually the whole asset, if our majority shareholder also agrees. So it's not that we are fussed about holding that investment going forward. Although from a yield perspective, it's an excellent asset to have on our books. But as a going concern, whilst we wait for a potential buyer, we will be harvesting the cash flows more aggressively from this particular asset. As we speak right now, where the coal prices are, this particular operation is throwing significant amount of cash. And our agreement with our majority shareholder is to harvest maximum amount of cash. This asset itself is not levered too much. It's a very likely levered asset and hence, enough cash is available for monetization.Today, we have in our acquisition financing, we have about -- which is about USD 205 million is pending for settlement, the acquisition financing for this particular 30%, which if today's run rate were to be applied, then this asset will be without debt -- or our investment will be without debt in the next 12-odd months time. So it's turned out to be a jewel in the crown. Again, in infrastructure business, those who wait patiently, get to reward and reap the awards in a period of time.As we speak forward, the strategy would be is to harvest this asset and -- because this asset will go into GPUIL, which is the non-airport vertical, this should start giving about USD 100 million, USD 150 million cash flows to the non-airport side of the business for it to financially strengthen themselves, and also to start to grow that business as we go forward. That's the broad strategy as far as PT GEMS is concerned.What was your second question?
Krishnagiri SEZ.
Yes. So Krishnagiri SEZ, we have about 1,900-odd acres of land left there. About 500 is currently contracted and about 200 out of that is being currently developed with a partner. So we expect that during this current fiscal year, I think we should be able to monetize around 300 to 500. That's the range that I would be comfortable giving you as on date. The balance will be developed, and we can look at the medium-term time line. And in the next 2-odd years, this whole 1,900-odd acres will be sold to third-party industrial houses who want to set up their industries in that region. That's the plan.
Third one, Warora, sir, is long term or short term?
The Warora -- if I may, the Warora [indiscernible], which we have with GUVNL currently is for 23 months and we have started in October. GUVNL, of course, has expressed intent to procure 3,000 megawatts on competitive basis [indiscernible] drafted documents [indiscernible] in that.
Understood, sir, Two book-keeping questions. Bharti Realty square feet the new -- Bharti Realty new deal, does it affect our accounting by any ways given that the time line has changed?And secondly, what is this exceptional item in the -- INR 211 crore in this quarter?
G. R. K. [Foreign Language], do you want to highlight...
Bharti deal is concerned, 2.63 million square foot income has been recognized. And with regard to the [ 2.16 million square foot land ] which we have considered in our balance P&L account amount on straight lining basis earlier has been reversed. That is what's been the exceptional item, which is coming below the EBITDA of INR 325 crore.
Okay. So INR 325 crore is exceptional item related to reversal of Bharti Realty deal, am I right?
Yes. That is with regards to the [ 2.16 million ].
The next question is from the line of Anshuman from ICICI Securities.
Sir, the first question is on -- clarification on the revenue share discontinuation which you had mentioned INR 720 crores. Sir, could you please explain for which period is it? Is it for FY '21? And have we started the revenue share from Q2 onwards, is it?
No, this is pertaining to basically the last quarter of FY '21 and 2 quarters of FY '22.
Okay. So -- and by when do we expect to start the revenue share again?
So the revenue share now we are currently enjoying the stay given by the Delhi High Court. And the case with the airport authority definitely has gone for appeal before the decision time, which has yet to hear the case in detail. The case is postponed to the end of this month.The second point is we are also agitating the case before the tribunal, which is already hearing the case. And they have already heard the case, and they have posted the case February 2022 for our [indiscernible]. So as long as the stay is there, we continue to enjoy it, but we are expecting the final outcome maybe out of the tribunal only in the -- around '22 June or July.
Okay. Okay. Sir, the second question is on the restructuring of the Bharti deal. So I believe that the CapEx, which we were doing and particularly at DIAL was being funded by the security deposit from the CPD and from the Bharti deal as well. So will this be -- in any case be -- will it see some change? Or will this be hit in any case? Will this restructuring have any impact on the CapEx going forward?
No, I think that will not have impact. We have considered about 14 billion -- INR 1,400 crores as the deposits as part of our CapEx program. We have currently received already INR 805 crores and expecting to receive the balance amount by I think -- in April [indiscernible] since our expansion program is going up to September 2023, we do not find any...
Okay. Sir, the third question is on the industrial partnership on -- with Groupe ADP. So could you just share some more details about what this partnership is about and how will it help the airports business?
Saurabh?
Yes. So on the industrial partnership, Ashis, why don't you go ahead?
That was half a question I heard before I got disconnected, sorry.
He wanted to understand how it is going to help the airports because of the industrial partnership.
Yes, sir, details about the partnership.
So the way it's structured is that ADP is a strategic partner, and they have significant operations in Europe and other parts of the world. [indiscernible] strength in India and Southeast Asia. So we are looking to see how we can leverage the know-how of each other and work together within the partnership. This is -- we have agreed to work in various areas, which includes the operations side, includes airline marketing, includes the digital and the innovation side, sustainability side. And so there are 6 to 7 areas that we have identified to work together on different projects, so that we can benchmark, learn from each other and progress. That's the basic construct of the industrial partnership.
Okay. Sir, finally, just on the earnouts, which was declared earlier related to our partnerships with the group, the INR 1,060 crores earnouts. So could you help us understand where do we stand currently in relation to the metrics which were laid before us for these earnouts? And also, for the INR 4,400 crore earnouts related to increasing our stake to 59% in GMR Airports. So where do we currently stand in that case?
So the first earnout will be tested actually end of this fiscal year. So I think we should wait it out. I really can't speculate where our accounting EBITDA will reach because as you can see, there are sometimes additions and sometimes subtractions. So we'll have to wait it out till March. From an operations perspective, we are on track. But from accounting standard and accounting treatment perspective, only time should tell us. As far as the INR 4,500 crore EBITDA, again, that has to be tested after completion of fiscal year '24. So again, early stages in that process. So we still have about 3-odd years to complete the achievement of earnouts on that scale.
The next question is from the line of Abhiram Iyer from Deutsche CIB Center Private Limited.
Apologies if these are multiple on similar avenues. But I just wanted to know on Bharti Realty, you mentioned that INR 805 crores that you received as deposits so far, how much of this would be in -- was this received in the September quarter or post September 30? You also mentioned that the annual fee for the year has been received. Again, what was the quantum? And was this received for September 30 or after September 30?
See, Bharti deal, we have earlier received INR 359 crore in February -- March 2019 itself. In addition to that, we have now received INR 603 crore of RSD, and annual fee pertaining to 2.73 million square foot of INR 203 crore for 1 year fully, we have received both items we have received.
Got it, sir. And just wanted to know from an accounting perspective, sir, should this be treated as being received in Q2 or would we see a cash flow in Q3?
No. In the cash flow, as far as -- the RSD is not a P&L account, it is a balance sheet item, of course cash has been received. And as far as ALF is concerned, INR 203 crores, though we have received fully, we have accounted only for 1 month in the quarter 2 additional pertaining to September because this new agreement is valid from 1st September 2021.
Got it, sir. And the second question is, are all governmental and regulatory approvals achieved now? I mean, basically, can we consider the deal to be ongoing and in full effect?
Yes, we have received all approvals, Delhi [ Airport ] approval which is a very critical, concept master plan approval has been completely received. We will be now submitting the detailed plan.
Got it, sir. Got it. And again, what would be the run rate of annual fee that you're expecting from post -- the Phase 2 completion for FY '23?
You are talking about the Bharti annual fee?
Yes, sir. Or just in general, the entire CPD revenue annual fee.
No. If it is of 4.9 million, the total annual fee will be INR 367 crores per annum.
Got it, sir. Got it. And we are expecting once the Phase II is completed in FY '23, we will receiving -- we'll be at this run rate?
For Phase 2, it is mandatory that Bharti has to pick up by April 2023. That is a condition. So they will start making the payment a maximum date of September 2023 onwards they make the full payment again for Phase 2.
Sorry, sir. Maybe I'm confusing a bit here. I'm talking about Phase 1A and Phase 1B, basically, the 2.16 million square feet.
Phase 1A, we have received now Phase 1B is also mandatorily they have to pay by September 2023. That's why in the previous question when the people have asked, whether you have project cost, whether you have any impact since this money is mandatorily Bharti has to pay before September 2023. So they will pay for Phase 1B by September 2023.
Got it, sir. Got it. And just 1 last question, sir. I believe, one, the other revenue of funding that was sort of mentioned in previous calls was through asset leasing towards the CapEx. Could you just give us a bit more color on the entity which is providing the financing? And is -- are the other plans for the facility still going through?
The facility is still going through. It is a Pushpak Leasing Finance Limited. It was a consortium which has bidded.
Got it, sir. Got it. And again, are there any -- there are no implications with respect to [ SREI ] default on the financing facility, right? There are no issues with any drawdowns or issues with any cash flow coming from the facility because of that?
No. We're only providing technical support. So the Pushpak has already taken over that responsibility and arranged...
The next question is from the line of Atul Tiwari from Citi Group.
Congratulations on getting all the approval for demerger. Sir, just 2 questions. Now that obviously, we are very close to seeing increase in number of international travelers. So can you give some idea about the relative profitability or the per passenger revenue between international passenger and domestic passenger, historically, pre-pandemic, I mean, on a per passenger basis, both on the aero side and the non-aero side, how much would be the revenue differentiator?
It will be difficult to provide the data on the call. I think we can provide on...
Okay. Okay. No worries. And sir, my second question is on the conversion of the FCCB. So I mean, we understand from your responses to some previous questions that there is an upper limit price above which GMR can post the conversion of the FCCB. And I think if I'm not missing, that price is about INR 23, INR 24. And obviously, the stock is at INR 40 plus. So what is holding us back from forcing the conversion of the FCCB?
Relationship with it with KIA, which is the FCCB holder. And we are in conversation with them. So whenever they are comfortable converting it, we will surely go ahead and convert it. We don't want to force something because that's not the way we are structured over here. In difficult times, they help us out. And in good times, we heed to their views also. So hopefully, in a short period of time, they take a final call as to whether they want to hold it as a debt instrument or want to convert into equity. From their perspective, honestly speaking, they would surely like to keep having the mark-to-market profits and yet get some yield out of it, right? So -- but we'll have that conversation soon after our demerger has been completed. We have that conversation with them. But you are right that the right to convert -- I can -- GMR can force that conversion, but that's not the way we are going to take it forward. We'll have a conversation with them before a final decision is taken.
Okay, sir. Okay. And sir, my last question is what is the holding company level debt as of now, the parent company?
Which parent company, can...
GMR stand-alone, GMR Infrastructure stand-alone.
Okay. Suresh, can you highlight that, the current as of September 30, I guess. It could be about a little more than [ INR 1,500 crores ]...
The stand-alone...
Stand-alone debt.
Yes, the stand-alone debt is close to about INR 1,500 crores at GMR Infra level.
The next question is from the line of Apoorva Bahadur from Investec.
Sir, on this AAI revenue share part, where you highlighted the INR 720 crore is the number which we have not paid till date. I believe this is only for FY '22, right, till date?
No. What we said is the total amount not paid till September is about INR 720 crores to INR 730 crores, which from January 2021 onwards [indiscernible] so 2 quarters of the current year and the last quarter of the previous year.
Okay. Okay. Fair enough, sir. And then sir, Bharti Realty deal, now that the contours has changed, we were recognizing the full amount of lease rentals. So are we able to reverse anything? I mean do we have to reverse anything?
We did reverse. We have [ showed ] INR 325 crore as an exceptional item as reversal.
That's the full amount?
Yes, that is the full amount, which is pertaining to the 2.16 million square foot, which will come into force by beyond March -- April 2023. Entire amount pertaining to that has been reversed, which is INR 325 crores.
Okay. Sir, I can also see an exceptional income of INR 530-odd crores in our energy business. Can you highlight what was that pertaining to?
Yes. That basically is an accounting entry or adjustment. What happened, Kamalanga, we had investor -- in the GMR Kamalanga Energy, there was investor. And it was under joint control. In September, we became 90% holder and Kamalanga is now consolidated. In that, this is the difference between net book value and fair valuation. So fair valuation of the asset being higher than net book value, the difference is taken in consolidation as an exceptional gain.
Okay. Sir, how did we become 90% holder? Did you buy someone out?
Yes, we -- the India infrastructure Fund in shares, we have got into an agreement to acquire their shares. So in that process, we have, by September, acquired 3.79 out of the 10 plus shares, and GMR Energy now holds 90% of Kamalanga. This will go up to around 97.5% because of this agreement which we have.
Okay. And sir, what is the consideration for this deal? How much are we paying?
I think this was disclosed in the last settlement with GIP. The amount I will get back to you. Yes.
Okay. Sir, and on this Gujarat PPA with Warora, I'm sorry, I missed the tariff for this. Can you please repeat?
Yes. What we are receiving at our bus bar is 3.07, 3.01 plus. We had a long-term transmission agreement where we were incurring INR 0.55 per unit. That also will be paid by Gujarat. So effectively, it's an increase in revenue plus reduction in cost. The net impact is INR 3.56.
Okay. That's good. Sir, any chances of increasing it beyond 23 months as well? I mean, is Gujarat keen on that on a longer-term agreement?
I missed the question, the line was not clear. Can anybody repeat...
I mentioned about this Gujarat PPA for 23 months, which we have the short-term one. Are there any chances of increasing the tenure, I mean does Gujarat seem keen on this?
Not increasing tenure of this agreement, but Gujarat is already, it's in the public domain, has come out with its intent to acquire 3,000 megawatts long term. And it has already circulated draft bid documents for comment. We would be participating in that and expect hopefully to have a favorable outcome. That's our attempt would be so.
Sure, sir. Fair enough. Sir, lastly on this, Bajoli Holi, we are seeing 98%, 99% completion for past many months. When can we expect this full completion?
It would definitely be completed before end of December.
The next question is from the line of Mohit Kumar from DAM Capital.
Three questions. Sir, what is process time line for demerger, let's say you get the NCLT approval today. How much -- how many days it will take for the separate listing of both the companies?
So if we were to get approval today then before December 31, we should have both the entities listed.
Roughly around 45 days.
These are best estimates because you have government agencies that are involved in it. So where we don't have too much control on time line, but I'm giving you best estimates.
Understood, sir. Secondly, Delhi Airport, how much of the land is in terms of acre, which is still available to be monetized for this Bharti Realty deal?
Go ahead, G. R. K.
Hospitality district, we have released about 45 acres. Then about [indiscernible] acres was the [indiscernible] project. The current Bharti deal, which is on [indiscernible] square foot, the land will be -- I mean, it is -- the exact number is difficult for me to say. It could be around 50 acres. So all together, we have utilized about 130 to 140 acres. Still we have got about 80 to 90 acres of land.
Sir, lastly, on the status of financial closure of Goa, has it happened? And what is the total CapEx?
Financial closure of Goa, that's completed long back, it is INR 2,615 crores, and with the debt is -- that has been already closed.
And when do -- and you need to file the petition for tariff, right? So when this will happen for Goa?
Tariff filing, we will be most probably likely to file by end of this month.
The next question is from the line of [indiscernible] from GrowthX Capital.
Congratulations on the recover. My question was actually regarding this national monetization plan, the government is planning to monetize about 25 airports -- not monetized, privatized 25 airports. And there was another announcement recently that by the end of FY '22, probably 13 of them will get privatized. So do you have any time line on which airports you might be bidding, and have -- has anything already taken place?
No, it's early days right now in the process. The government has just appointed a consultant. So let's wait it out before the formal process begins. Right now, not even an [ RFP ] is out there. So -- but yes, we will be surely looking at many of these airports, if not all, very careful. It's our stated position that we would like to grow our portfolio within India. And like last time where we had bid for 6 airports, we did not win any, we will still seek other growth opportunities as and when the Government of India puts it out. So our intent is there. The process is in early stage. I think this will be somewhere in February, March of this year when this whole process will start to take much more concrete shape.
Okay. And I just had 1 more question. So on -- regarding to your Bhogapuram Airport, could you give me expected tax which you could be serving?
Which airport?
Construction has finally happened.
Bhogapuram, you are talking?
Yes. Yes. Yes, Bhogapuram.
Bhogapuram Airport, the construction is yet to start. We are in the detail -- designing work is going on. That is expected to start with about 4 million, 4.5 million passengers by the time we start operations.
Okay. And any time line, how much time can that probably take?
No, once the land -- land is yet to be handed over by the government otherwise [ we free ]. And once they hand over the land, appointed date is announced, within 3 years, the construction has to be completed, even we expect by next March, if the government is fully handing over the land, then by 2025, the project will be on.
[Operator Instructions] As there are no further questions from the participants, I would now like to hand the conference over to Mr. Saurabh Chawla for closing comments.
Thank you. Thank you, everybody, for joining on a Saturday evening. Our team is, of course, available for any further questions you may have, which is far more granular in nature, we will answer whatever is possible. You can contact the IR team, Amit Jain and [indiscernible]. Thank you so much. Have a wonderful evening.
Thank you. On behalf of GMR Infrastructure Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.