GMR Infra Q1 net drops by 41%

GMR Infrastructure Ltd has recorded 41.45 per cent drop in its net profit for the quarter ended June 30, 2008, at Rs 40.69 crore as against Rs 69.49 crore in the corresponding period of the previous year. The company’s total income, however, has increased by 85 per cent at Rs 892.33 crore in the first quarter of the current year as against Rs 483.14 crore. Total expenditure during the quarter was at 72 per cent of the income, while it was at 70 per cent in the first quarter of the previous year.
Significant rise in the interest and other finance charges and losses on foreign exchange fluctuations are seen as two key reasons for the drop in net profit in the first quarter. While the interest and other finance charges increased to Rs 68.91 crore as against Rs 37.53 crore in the corresponding period of the previous year, foreign exchange fluctuations have resulted in a loss of Rs 45.68 crore. The company, in the Q1 of the previous year, had made a profit of Rs 12.62 crore due to forex fluctuations.