M NEYBEE June 2008

KNOW VENTURE KNOW GAIN

INDUSTRY: INFRASTRUSTURE COMPANY: GMR INFRASTRUCTURE LTD.

BSE code : 532754

Face Value : 2/- Recommendation: BUY
M.Cap (mn) : 218204
Registered Office: 52 week H/L : 269/97
SKIP House Eq. Share in mn : 1820
25/1 Museum Road B.V : 31
Bangalore- 560025 EPS (TTM) : 2.5 CMP : 133
Price/ BV : 4.1
Karnataka Price/ EPS : 53 Target Price : NA
Dividend Yield : 0.00
Website: www.gmrgroup.in % of Shares
Dematerialised : 99.85

HIGHLIGHTS OF GMR INFRASTRUCTURE LTD.

SENSEX GMR
25000 300 • GMR Infrastructure Ltd. (GMR) is a pure infrastructure
20000 250 developer engaged in development of projects across the
15000 200 airport, power, road & real estate sectors through SPVs.
150
10000 100 • GMR has an edge over its competitor’s in profitable domains
5000 50 such as airports and a veteran team to execute a project from
0 0 notion through commissioning. GMR has appended one more
airport to its kitty with the acquisition of Turkey's Sabiha
Gokcen airport through a JV.
• GMR Infrastructure has placed 165.23 mn shares at a price of
Source: www.bseindia.com Rs. 240 to QIB’s. It will raise Rs. 39.66 bn & equity base will
expand by 9.08% post dilution. The funds raised from this
issue would be utilized for capital expenditure of its various
projects.
• GMR’s vanguard projects include airport construction at
Delhi, Hyderabad and at Istanbul, Turkey. India is thrusting
Share Holding% as on Mar 08 more emphasis on infrastructure & is likely to auction 35 non-
metro airports. Apart from that many eastern-European
Promoters airports are lined up for bidding.
5.94
2.64 • GMR has successfully couped a 3300 acre SEZ and is close to
FII, MF, Insurance winning many hydro projects in Nepal. Potential wealth
18.14
creation coupled with worldwide business outlook will act as
Corporate Bodies catalyst for GMR’s development.
• Capacity addition in power generation i.e. 2.4GW by FY12E v/s
73.28 Public 0.8GW in FY07 will allow GMR to capitalize on India’s forecast
demand-supply gap.
Source: Bseindia • GMR is on hunt for expansion into toll road development as
India aims to quadruple road capex (Rs. 1,720bn / US$44bn)
over FY05-12E.

MONEYBEE SECURITIES PVT. LTD. ~ RESEARCH REPORT ~ GMR INFRASTRUCTURE LTD Page 1
 • GMR’s new ingress into real-estate development led by
Details Q.E Q.E Q.E
(Figures in mn) entrance to prime land-bank and swells the business through
Mar08 Dec07 Sep07
SEZs.
Sales 9052 5350 3953
• GMR has a folder of exceptionally money-spinning assets such
EBDITA 1716 1780 1673 as airports – Delhi airport / Aerotropolis, Hyderabad &
EBDITA % 19 33 42 Istanbul with multiple revenue streams.
DEPRECIATION 574 365 439 • Good management team with proven track record in local &
INTEREST 678 340 359 international markets, financial & marketing skills to match
TAX 51 275 156 with its peers and strategic moves to form alliance with
NPAT 413 641 718 partners like Fraport, MAHB etc makes an attractive bet.
EPS 0.27 0.38 1.5 • Cocktail of concluded / green-field projects and Build-Own-
Operate-Transfer (BOOT) projects with annuity and traffic/
off-take risk to guarantee minimum revenues.

FINANCIALS OF GMR (RS IN MN) VALUATION

25000
• We expect GMR’s recurring consolidated earnings to grow at
20000 a 54% CAGR over FY08-10E. This would be led by a analogy of:
• Start of revenue contribution from Delhi Airport, Hyderabad
15000 and Sabiha Gokcen airports
• Revival of VPGL due to improved fuel availability from FY10E
10000 • Regular monetization of real estate at Delhi & Hyderabad
airports.
5000 • GMR Energy IPO is on the anvil & company is planning to raise
500mn US$.
0 • GMR Infra’s investment in its subsidiary is valued at Rs. 97/-
2006- 2007-
07 08 per share.
Net Sales 16967 22948
Other
183 698
Income
Gross Profit 5620 6682
Depreciation 1346 1785
Interest 1441 1687
Tax 415 584
Net Profit 2418 2627
EPS 5.56 1.23

MONEYBEE SECURITIES PVT. LTD. ~ RESEARCH REPORT ~ GMR INFRASTRUCTURE LTD Page 2
 GMR INFRASRUCTURE LTD. FINANCIALS (Rs. mn)

FY Revenue EBDITA PAT EPS P/E EV/OP ROCE ROE

06-07 16967 5437 1744 1.05 143 83.48 6.8% 13.6%

07-08E
08-09P 32461 14302 3932 2.38 63
09-10P 37949 18652 6461 3.90 38

GMR PROJECT MIX BY BUSINESS DOMAINS

Domains

Road GTTEPL GTAEPL GACEPL GPEPL GJEPL GUEPL

Power GEL GPCL VPGL GBHEP THPP BHHPP DTPP CTPP
Airport GHIAL DIAL SGA

GMR PROJECT MIX BY STAGE OF DEVELOPMENT

Stage

Operational GTTEPL GTAEPL GEL GPCL VPGL DIAL SGA

Development GACEPL GPEPL GJEPL GBHEP THPP BHHPP DTPP CTPP
GHIAL GUEPL DIAL* SGA*

* DIAL & SGA represent existing airports undergoing an expansion phase

Project/Company Acronym Project/Company Acronym

AIRPORT POWER
Delhi International Airport DIAL GMR Energy ltd. GEL
Delhi Aerotropolis Ltd. DAL GMR Power Corp. Ltd. GPCL
Hyderabad International Airport HIAL Vernagiri Power Generation Ltd. VPGL
Sabiha Gocken Airport SGA Badrinath Hydro Power Generation Ltd. BHEP
Talong HPS THPP
ROADS Bajoli Holi HPS BHHPP
GMR Tambaram – Tindivanam GTTEPL Dhenkanal TPS DTPP
GMR Tunni Anakapali GTAEPL Chattisgarh TPS CTPP
Ambala Chandigarh Road GACEPL
GMR Jadcherla expressway GJEPL
GMR Pochanpaly Expressway GPEPL
GMR Tindi Ulunderpet Road GUEPL

MONEYBEE SECURITIES PVT. LTD. ~ RESEARCH REPORT ~ GMR INFRASTRUCTURE LTD Page 3
 MONEYBEE TEAM

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CHETAN NAGDA, Head – Research

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PRIYAKANT DAVE, Research Analyst Sector: Cement & Telecom

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RIKEN MEHTA, Research Analyst Sector: Power

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e: mehta_riken@hotmail.com

ARPITA VAKIL, Technical Analyst Sector: Oil

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