Why did GMR losses widen so sharply in the Jun-20 quarter?

No prizes for guess but their core businesses were badly impacted by the lockdown following COVID-19. For example, GMR Infra announced a doubling of its net loss to Rs.834 crore for the Jun-20 quarter on the back of reduced airport revenues.

The fall in airport revenues was largely due to most air services being either shut or running at a skeletal level. This fall in profit was led by a sharp halving of the total revenue income at Rs. Rs.1224 crore for the Jun-20 quarter.

Revenues from the airports business, which is the bread and butter business for GMR Infrastructure, almost fell by 70% to Rs.494 crore during the Jun-20 quarter. This likely to take a long time to recover so even Sep-20 quarter could be under pressure.

The face saver for GMR came from the power vertical where revenues were up by more than double at Rs.300 crore in the Jun-20 quarter. Meanwhile, the good news is also that GMR is aggressively monetizing its assets and looking to substantially cut down its debt.