have a 'sell' rating on the stock, according to an analyst poll conducted by Bloomberg.
Philippines had formally awarded the $390 million Mactan-Cebu International Airport rehabilitation, expansion and operation project to the GMR-Megawide Consortium for a 25-year concession period, on Saturday.
In the next three-four years, GMR and its partners will renovate Mactan Cebu's passenger terminal, which was originally built to handle 4.5 million passengers per year but touched the 7 million mark in 2013.
The consortium will also build a separate terminal over the next few years designed for international flights and operate the improved facility.
"The current capacity at the Mactan-Cebu International Airport is around 5 million, while the traffic is around 7 million. In the next four years capacity will be increased to 14 million (annually),” said the GMR spokesperson.
The current revenue of the airport is around $35 million, added the spokesperson without elaborating the company's revenue outlook from the airport for the next quarter. However, GMR led consortium expects to generate cash from the airport from day one.
"It (Mactan-Cebu International Airport) is a currently cash generating airport and there will be a cash generation from this airport from day one, which will contribute to the construction cost of the project and therefore our own equity contribution,” said Kapur during the above mentioned analyst call, adding, “We also intend to take up construction ourselves in partnership with other partners. So, there would become profitability coming in from that angle also.”
GMR's Airport business has posted a profit (profit after tax but before minority interest) of Rs 50 crore on net revenues of Rs 1,120 crore during the third quarter of FY14.