Ladies and gentlemen, good day, and welcome to GMR Airports Infrastructure Limited conference call to discuss Q2 FY 2024 results. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. 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 from the management is strictly prohibited. I now hand the conference over to Mr. Saurabh Chawla for his opening remarks. Thank you, and over to you, sir.
Thank you, and good evening, everyone. I'm delighted to welcome our shareholders, analysts, and other stakeholders to our Q2 fiscal 2024 earnings call. With the festivities in the air, I convey my best wishes to everyone. As we navigate through the challenging global landscape, we are also yet to discover where our strength and resilience lies. India is showing strength even as the economies around, the growth is witnessing a slowdown. IMF's recent upgrade to India's GDP forecast, declining CPI, pause in rate hikes, strong IIP data, and year-on-year growth in GST collections point to the strong momentum of the economy going forward and into a season where it's the best quarters for consumption and travel. With this macro picture in mind, let me delve into our Q2 fiscal 2024 performance.
Momentum in the total income continued with Q2 fiscal 2024 at INR 21.8 billion, which is up 25% year-over-year, driven by the traffic growth. Translating to a better growth of 34% year-over-year to INR 8.5 billion. Margins remained healthy at 53% in Q2 fiscal 2024, up from 49% in Q2 fiscal 2023. On the operational front, we continued to see strong 25% year-over-year growth in our passenger traffic in second quarter, reaching to about 26 million passengers, with Delhi witnessing an 18% year-over-year growth and Hyderabad witnessing 24%. Both these airports handled the highest number of half-yearly passengers ever. International passenger traffic share for the quarter was 23%. Cumulative traffic at Goa Airport also crossed 2.5 million by the end of the quarter, although the suspended Go First operations impacted Q2 fiscal 2024.
With that, I'll now switch to the key highlights for the quarter. Last week, we announced that we had entered into a share purchase agreement with MAHB, to acquire the 11% stake in our Hyderabad Airport for negotiated aggregate consideration of $100 million, thereby further strengthening our portfolio of high-quality assets. Post-acquisition, GMR Airports Limited will own 74% stake, up from the existing 63% in the Hyderabad Airport. The merger of GMR Airports Limited with GMR Airports Infrastructure Limited, which is the listed co., is progressing as per plan. We received the no objection certificate from RBI and the stock exchanges during the quarter, and the application has been filed with NCLT. As further progressive steps in the merger process, we recently inter alia, received the NCLT direction for convening a meeting of equity shareholders of GMR Infra Limited on December 2, 2023.
We expect the merger to complete within the fiscal year 2024. Delhi Airport became the only Indian airport with four operational runways and elevated cross taxiway, post the inauguration in July 2023. Goa Airport is now fully operational after the start of international operations in July. EPC bids for Bhogapuram Airport have been finalized. Bhoomi Poojan, the groundbreaking ceremony, will be performed tomorrow, that is, November 1. Delhi and Hyderabad Airport expansion works are progressing steadily towards completion, and they will be completed during the current fiscal year. We operationalized duty-free store at Goa and are ready to cater to the anticipated increase in traffic in the upcoming festive and holiday season. At Goa, we also operationalized the greenfield cargo terminal, with international operations commencing from September 2023. We also continue to build on our ESG journey.
We understand the impact of, that the airports can have on environment and the local communities around them. We strive to minimize this impact as much as possible. Both our Delhi and Hyderabad airports are now ACI Level 4+ accredited airports, which is the highest level. ASQ score at both the airports were maintained at 5 for the quarter. Delhi International Airport Limited completed Assessment of Climate Action Program, which is CAP 2.0 climate change by CII, rolled out a green transportation program for stakeholders and also commissioned continuous ambient air quality monitoring station at Delhi Airport. Goa Airport is committed to achieve carbon neutrality, level 3+, accredited by ACI-ACA within 5 years from COD. During Q2 fiscal 2024, our CSR spend was in excess of INR 30 million, with beneficiaries of over 20,000 people.
The presentation with all the financial numbers are already available with you. If not, you can download it from the IR section of our website. We're available to respond to your questions on this call and offline after the call. Now, I would like to open the floor for queries, which will be addressed by my colleagues from both the corporate and business teams. Thank you.
Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question, may please press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Parvez from Nuvama Investment Advisory. Please go ahead.
Hi, sir. Congrats on the good set of numbers. Just one question. For Delhi International Airport, we can see some good figures on duty-free stores. So what is the outlook for the H2? Usually, H2 is more stronger, so can we see some good figures coming in there?
I am asking Rajesh to respond.
Yeah, you are right, so generally, the second half of the year, where, you know, you have the tourist season, plus the other business traffic, plus the festival, so you generally tend to see better numbers in the second half of the year.
Okay, sir, and on this Delhi International Airport, other operating revenue, what does that consist of?
GRK Babu, can you take this, please?
Other income, you are talking about it, basically?
The Delhi airport.
Yeah.
If you see H1 FY 2024 figures-
Uh-huh.
in that we have shown other revenues, so of INR 103 crore.
Correct.
If we can get a breakup of that figure?
This 103 crore rupees is basically pertaining to, about INR 16 crore bank, bank deposit, and INR 74 crore is about dividend income. We have received, DIAL has received INR 74 crore dividend income, basically from DDFS, about INR 55 crore, that is a duty-free, and DASPL and [Chelavig]. All together, we have received about INR 75 crore dividend. And other, small income, all together, about INR 103 crore is the income.
Okay, sir. And, what is the EBITDA outlook that we see for this year?
Sorry?
EBITDA outlook.
What is-
EBITDA outlook. We don't give guidance on EBITDA or revenues. We basically generally give guidance as to what will be the growth in traffic. That's what we do.
Uh.
We leave it to the analysts to assume the numbers and derive their own assumptions there.
Okay, sir. So just one last question, if I can squeeze in. This yield per passenger on non-aeronautical revenue, I mean, any guidance on that?
No, no guidance on that. But, you know, as we have always articulated, we see increasing trend of consumption at the airport, and that's the secular trend that we have. We have experienced that in the past. There sometimes could be some blips because of mix of passenger, you know, at various airports, but the general trend line is that the spend per passenger and yield per passenger is only going to go up.
Okay, sir. Thank you.
Thank you. The next question is on the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yes, sir. Thank you for the opportunity. So first question is, sir, what are the space left for the merger of the GAL, GMR Airports Limited with the, with the listed entity? And one clarification, has the FCCB been issued and the money raised from the, Groupe ADP, or is it to a post-merger?
So Mohit, the FCCB was issued actually end of March itself. If you look at our balance sheet of March 2023, the FCCB was already subscribed by ADP. It got reflected in our accounts and our net debt subsequently came down. So that is already on the books, and it is part of our capital structure. With respect to the merger, as I highlighted in my opening remarks, we are expecting the shareholder approval to happen on December 2 or December 3. And post the shareholder approval, then there is a second motion that has to be undertaken. It's more of a court-driven process, and that will be undertaken.
So maybe in 30-60 days time, post the, post the, the shareholder meeting approval, this should all crystallize. We can't predict exactly when the court will call for these, or how their process runs, but these are expected timelines, and that's why I had guided that the merger will get completed, most likely in the fiscal 2024 itself.
Understood, sir. My second question is on the, on the TDSAT order. I think we received that quite a time back, quite a time ago. So what is the timeline for appealing against the order? Any development which you think you can share with us?
Yeah, for TDSAT, GRK Babu, why don't you please take this?
Yes, sir. TDSAT, as of today, I think that no one has appealed, but we are, we understand that somebody is filing an application. As of today, there is, there's no appeal has been filed by anybody.
Understood, sir. My last question is, so can you please help us, help us with how much of the CapEx has been capitalized during the H1? It looks like your PPE has gone up by INR 5,000 crore compared to March 2023. And we can see the impact on the interest cost and the depreciation. But however, I see that the commissioning of the asset is still pending, the full commissioning.
GRK Babu, please go ahead.
Yes, I think that the capitalization in case of Delhi, as of today, is about INR 6,700 crore has been capitalized. Balance will get capitalized with the current quarter and the next quarter. Everything will be done by end of March 2024. Same is the case in case of Hyderabad also. The capitalization is more than INR 3,700 crore has been capitalized. Balance will be capitalized in the third and fourth quarter. So both are expecting to complete the entire expansion by January 2024.
Understood. So my last question, acquisition of, the... Of course, you just acquired, you're looking to acquire the Malaysia Airports Holdings stake of 100% at least $100 million. How are you looking to fund this particular, you know, the, the, the acquisition?
Yeah. So I mean, as you know that we have, you know, debt-raising capacity at GAL, and at this stage, we will be raising medium-term debt at GAL to fund for the acquisition of the Malaysian Airports stake.
Understood, sir. Thank you on all of this, sir. Thank you.
Thank you.
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Shivank Chauhan from Barclays. Please go ahead.
Yeah, hi. Thank you for holding. My question is on CapEx for Delhi and Hyderabad.
Sorry to interrupt, Mr. Chauhan. There's a lot of disturbance from your line.
Oh, okay. Is it clear now?
Yes, it is received. Thank you.
Yeah. So I think, just want to know the CapEx numbers for Delhi and Hyderabad airports. I think it was just covered and I understood. My second question would be on the other operating revenue. I think that also I missed the breakup from GRK Babu.
Honestly speaking, we could hear you very well, but on the CapEx side, I think I'll ask GRK Babu to answer. Although he had already answered, maybe he can repeat his answer for you.
Yeah. The capitalization, I have already explained, about INR 6,500 crore we have done in DIAL till September, and the balance capitalization is expected to be completed by January 2024. The total asset capitalization is around INR 11,500 crore. In case of Hyderabad, we have already completed INR 3,800 crore because part by part, we are capitalizing as and when the asset is put to use. Expected to capitalize full amount of INR 6,800 crore by January 2024 in case of Hyderabad.
All right. Yeah, that's clear. And on the one, two, three for the operating revenue breakup, could you?
Yeah. The other operating revenue mainly include the CPD income, which is coming from the auxiliary development. Yeah.
Yeah, that was 74-0, right?
Yes. Yes. All right. Thank you. Thank you.
Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. Participants in the conference, if you wish, wish to ask a question, you may please press star and one. As there are no further questions, I now hand the conference over to Mr. Saurabh Chawla for his closing comments.
Thank you. Well, this was a very short call, which means that I think our disclosures are pretty good and transparent, and our business model is now much better understood by the analysts. So thank you, everybody, for this call, and again, my best wishes on this festive season. We are all available offline. If you have any further questions that may come to your mind, you can reach out to the IR team and they will revert back expeditiously. Thank you so much.
Thank you, members of the management team. Ladies and gentlemen, on behalf of GMR Airports Infrastructure Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.