Institutional Equities - Online Share Trading

Institutional Equities
Exhibit 6: Road project portfolio
Road portfolio scaling high
GMR Infrastructure has a operational road portfolio of six operational BOT projects, three based on toll
collection and three on annuity, aggregating Rs22.7bn. During FY11, the company achieved financial closure
for three more road projects which are under construction, namely the Hyderabad- Vijayawada toll highway,
the Chennai Outer Ring annuity road project and the Hungund-Hospet toll highway which are expected to
achieve CoD (commercial date ) during FY13. This translates into a road length of nearly 421km operational
and 310km under construction. The company has now shifted its focus from normal road projects to
expressways, highways of longer stretch, mega projects, etc to leverage on its financial qualification and
project execution capability. The company has already been short-listed for one mega expressway project
worth Rs 60bn ($1.3bn).
Road Projects GTAEPL GTTEPL GPEPL GACEPL GJEPL GUEPL
Location Tuni-Anakapalli Tambaram-Tindivanam GMR Pochanpalli GMR Ambala-Chandigarh Faruknagar-jadcherla Tindivanam-Ulundurpet
Stake (%) 61 61 100 100 100 100
Length km 59 93 103 35 58 73
Project cost (Rsmn) 2,950 3,620 7,043 4,993 5,155 8,817
Scope of work 2 to 4 lanes 2 to 4 lanes 2 to 4 lanes 2 to 4 lanes 2 to 4 lanes 2 to 4 lanes
CoD Dec-2004 Oct-2004 Mar-2009 Nov-2008 Feb-2009 Jul-2009
Concession period 17.5 years from Jun-2002 17.5 years from Jun-2002 20 years from Sep-2006 20 years from May-2006 20 years from Aug-2006 20 years from Oct -2006
Concession type Annuity Annuity Annuity Toll Toll Toll
Under construction
GHVEPL GCORRPL GHHEPL
Location Hyderabad-Vijayawada Chennai outer ring road Hungund-Hospet
Stake (%) 74 90 51
Length (km) 181 29 99
Project cost (Rsmn) 21,934 11,668 16509
Scope of work 2 to 4/6 6 lanes& 2 service lanes 2 to 4 lanes
CoD Jul-2012 Jul-2012 Dec-2012
Concession period 25 years from Apr-2010 20 years from Jun-2010 19 years from Sep-2010
Concession Type Toll Annuity Toll
Source: Company, Nirmal Bang Institutional Equities Research
We have considered a combined value of Rs11.7bn for six road projects in our SOTP valuation using the
FCFE methodology. Three annuity road projects contribute Rs6bn and three toll road projects constitute
Rs5.7bn, resulting in a valuation of Rs2.90 per share. We have not included the valuation of the projects that
are under construction.
Exhibit 7: Road project valuation
Project name Route length (km) Value (Rsmn) Stake Value of GMR stake Rs/share
Tambaram-Tindivanam 93 2,041 61% 1,245.1 0.3
Tuni - Anakapalli 59 2,711 61% 1,694.2 0.4
Adloor-Gunla-Pochanpalli 103 2,543 100% 2,543.1 0.7
Ambala-Chandigarh 35 (175) 100% (174.9) (0.0)
Faruknagar-Thondapalli-Jadcherla 58 4,206 100% 4,206.5 1.1
Tindivanam-Ulundurpet 73 1,324 100% 1,324.1 0.3
Total 421 - - 10,838.2 2.8
Source: Company, Nirmal Bang Institutional Equities Research
58 GMR Infrastructure