Ladies and gentlemen, good day and welcome to GMR Infrastructure Limited conference call to discuss Q3 FY 2022 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 risks and uncertainties. Also, recording or transcribing of this call without prior permission of the management is strictly prohibited. I now hand the conference over to Mr. Saurabh Chawla for the opening remarks. Thank you, and over to you, sir. Thank you. Good afternoon, ladies and gentlemen. Thank you for joining the third quarter fiscal 2022 earnings call. This is the first call of a de-merged GMR Infra as a pure airport entity in the Indian capital markets. Hope all of you are doing safe and doing well. To begin with, I would like to make some comments as far as economic recovery is concerned. As you are aware, economic recovery broadened in Q3 of FY 2022, and the business activities picked up pace post the effect of the second COVID wave. Substantial vaccination of the population, coupled with the easing of COVID-related restrictions, aided the economic activity. However, as you know, the third COVID wave hit India towards the end of calendar year 2021. Although cases surged in mid-January 2022, the severity of the infection has been limited. However, cases have also started now to recede rapidly from its recent peak of about 0.35 million cases in early January 2022 to about 0.07 million cases as of February 8, 2022. As per experts, India is now much better prepared to cope up with the COVID waves going forward due to a significant part of our population being vaccinated, resulting in lower hospitalization and mortality numbers. As such, economic impact of the third wave is also expected to be very limited as compared to the previous two COVID waves. Before briefing you on the business performance, I would like to highlight the following key points. Firstly, following demerger scheme coming into effect from December 31st, 2021, GMR Infrastructure Limited or GIL becomes India's first and the only listed airport company. We are now well poised for the next leg of our growth, having built our expertise in the entire airport value chain. GMR Airports vertical has uniquely diversified beyond the airport development and operations. It's developed towards high growth potential of asset and capital-light businesses of airport adjacencies or airport ancillary service operations. We started as an airport operator and have, over the years, not only increased our airport portfolio, but have also built expertise in the airport ancillary business operations by entering into joint ventures and partnerships in the businesses of duty-free, car park, food and beverage, advertising, promotions, cargo, et cetera. The partnerships have helped us to develop capabilities and understanding of the airport ancillary businesses as well as understanding of the non-aero commercial businesses at the airport. It has now enabled GMR Airports to leverage its expertise and experience to independently operate ancillary airport businesses. We will strengthen the GMR Airports platform as we build and scale ancillary business platforms. We will scale the platform presence across our own network of airports and also expand presence to external and open market opportunities. We have in fact operationalized the new opportunities. For example, GMR Airports has won a non-aero master concession and cargo business bids for the upcoming Goa Airport. It is also the operating duty-free business at the Kannur International Airport. GMR Engineering and Management Services won an IT infrastructure bid for an airport in Kuwait. Secondly, GMR has signed shareholders agreement with Indonesia's Angkasa Pura II for the development and operation of Kualanamu International Airport in Medan, Indonesia. The project scope includes operation, development, and expansion of the airport over a period of 25 years. Kualanamu International Airport is an operating airport with heavy cash flows. The project marks GMR's entry into the fast-growing Indonesian aviation sector, the largest in ASEAN and a high potential market. Our commitment is to transform Medan Airport into a Western international hub of Indonesia. We are seeing visible signs of fast traffic recovery. The third COVID wave hit India from the latter part of December 2021 and had an impact on the domestic traffic. However, the impact was significantly lower than the first two waves. International traffic, on the other hand, has not got impacted as much compared to the previous waves. Recent traffic data suggests that the third wave impact on traffic is waning. For instance, the daily average PAX at Delhi Airport and Hyderabad Airport have turned around and has reached 58% and 56% of the pre-COVID level during the week ended February 6, 2022, respectively, as compared to 43% and 49% respectively during the week ended January 23rd, 2022. International daily average PAX at Delhi Airport and Hyderabad Airport reached 47% each during the week ended February 6, 2022, respectively, as compared to 42% and 45% respectively during the week ended January 23rd, 2022. The data indicates that the traffic seems to have bottomed out and is recovering rapidly. Cargo traffic remains resilient and is unfazed by multiple COVID waves. Proceeding data indicates that the traffic is expected to bounce back quickly as COVID third wave is unlikely to be economically disruptive. We have seen similar traction in the previous two waves, even amidst restrictions in the airline capacity by the government. We anticipate domestic traffic to reach pre-COVID levels in fiscal year 2023 and international in fiscal year 2024 in our Indian airports, mainly driven by decline in COVID cases, rise in vaccination. As you are aware, cumulative COVID-19 vaccination doses have crossed 1.7 billion doses in India. Over 75% of the adult population in India has already been administered second dose, and over 52% children of 15 to 18 age group have been jabbed so far. Globally, too, significant parts of the population of various countries have been inoculated with at least one dose. For example, U.S. has reached a level of 75%. U.K., 78%. Canada, 86%. Germany is at 76%. France, 80%. Overall, 63% of the global population has received at least one dose. Various countries have also started administering booster doses to make the protection from COVID even stronger. This will aid passenger confidence to travel, easing COVID-related restrictions. Scheduled international operations are still restricted by Indian government till February 2022, and the entire international airline operations from India is functioning through the air bubble arrangement. Currently, air bubble arrangements are with 35 countries. However, various countries have started to ease and remove COVID-related restrictions, with U.K. in particular removing all COVID-related restrictions, and similar steps are also being taken by other countries in Europe such as Norway, Netherlands, Ireland, et cetera. The Asia Pacific region has also started to open up for travel for vaccinated passengers, and traffic has begun with key markets including Singapore, Australia, and Hong Kong. Government of India continues to track these developments and is expected that they may consider allowing scheduled international operations in the near future. Further, even on the domestic front, statewide restrictions on air travel have eased substantially with indications of further easing. In addition to this, fleet additions by major well-capitalized Indian airlines, especially the takeover of Air India by the Tatas and entry of new airlines, including that of Akasa and Jet Airways, will further improve the traffic scenario. Lastly, we have made significant progress in our CapEx programs. Delhi, Hyderabad and Goa airports have achieved 53%, 69%, and 54% completion as of December 31st, 2022. In Goa, as of January 31st, 2022, we have achieved 60% of the CapEx programs, and the airport is expected to be inaugurated during August 2022 in a phased manner. I would also like to briefly touch upon the best practices and recognitions received on the ESG front. Delhi International Airport has been re-accredited by the Airports Council International, ACI, Airport Health Accreditation program. The AHA validates the airport's health measures, implements practices that align with ACI Aviation Business Restart and Recovery Guidelines, and provides reassurance to passengers whilst demonstrating the airport's commitment to public health and safety and grants industry recognition for excelling in safe hygiene practices. It was a proud moment for GMR that Mr. Videh Kumar Jaipuriar, CEO of Delhi Airport, has been declared as the International Airport Review Person of the Year. The competition was stiff, with over 70 global nominations for the award, which finally got shortlisted to 10-odd people. Hyderabad Airport was awarded the Certificate of Merit at the National Energy Conservation Awards 2021. It is also awarded with the prestigious Excellence Gold Award in the Telangana State Energy Conservation Awards of 2021. ACI result for Hyderabad Airport stands at 5.0 for quarter three fiscal year 2022. The presentation with all financial numbers are already available with you. If not, it can be downloaded from the investor relations section on our website. We are available to respond to your questions on this call and offline post the call. Now, I would like to open the forum where my colleagues from the airport sector and specific airport assets and airport corporate can answer your queries. Thank you so much. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone 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. Reminder to the participants, anyone who wishes to ask a question may press star and one at this time. The first question is from the line of Mohit Kumar from DAM Capital. Please go ahead. Good evening, sir. Congratulations on the demerger. My first question is, what is the status of arbitration with Airports Authority of India? Can we expect the normal service to resume from FY 2023 onwards for revenue sharing? That's the first question, sir. GRK, Babu, you would like to take this question, please? Yes. As far as the arbitration is concerned, it is going on. Now the dates have been finalized for the month of May for the purpose of cross-examination as well as the final hearing. We can expect the final outcome from the tribunal, maybe in the third quarter of this calendar year. As far as the revenue share payment to the Airports Authority of India going forward, we will look at it that if we reach the pre-COVID level operations by March, we may consider, but as of today, no decision has been taken. Understood, sir. Secondly, sir, can you please explain the new arrangement with Bharti Realty and how does it affect our accounting for the, you know, this quarter? No, there is no, I mean, impact in this quarter. Whatever impact has already been given in the last quarter. The Bharti transaction is 4.98 million. Out of that, 2.78 million has been now they have taken over, and they have paid the entire money. I think we have explained in the last call. Almost about INR 1,100 crore money has been received, including the annual license fee. For 2.78 million, the annual license fee is about INR 204 crore has been fully received for one year on at the first end of September. That has already been accounted. This quarter we have accounted proportionately for three. That is- Understood. Lastly on the sir FCCB in the presentation it mentioned that the FCCB amount is $1.4 billion. Is the amount correct, right? And what is the conversion price of the FCCB? Are the arrangements similar like earlier or is there some change? Ashok, you wanna take this on the FCCB? I think Ashok is not there. Quickly, I think, the FCCB amount was $300 million, which in the demerger has been allocated $25 million to the airport sector and $275 million to the non-airport sector. As you are aware, prior to the demerger, the conversion was at 18 rupees per share. So it is substantially in the money. And the conversion has to be simultaneous. That is, that the FCCB holder has to convert both sides at the same period of time. At this stage, GPUIL or the demerged entity of the non-airport assets is yet to be listed, which should happen by end of February. It will become very clear as to what are the pricing of both sides, on the demerged entities, and the holder can convert it at that particular point of time. Last but not the least, because it is deep in the money, the issuer also has the right to force the conversion of the FCCB if required. Having said that, we are always in touch with our key stakeholders. The holder, which is Kuwait Investment Authority, has been one of supportive investors, and we will do whatever is in the best interest of the company and of the investor. Understood, sir. Thank you and all the best. Thank you. Thank you. The next question is from the line of Atul Tiwari from Citigroup. Please go ahead. Yes, sir. Thanks a lot. Sir, post this demerger from GMR Infrastructure, how much of the demerged entity's debt and any other liability has been guaranteed in terms of the contingent liability? These are historical agreements that were in place. The broad contours would be that the continuing contingent liability would be about 3-3.5 thousand crores going forward, which, where the loans have moved to the new entity, which is GPUIL, whereas there is continuing guarantee from GIL. Having said that, if you look at you know some specific cases, for example, one of the continuing guarantees towards the acquisition finance taken many, many years back to acquire 30% stake in a coal mine in Indonesia. That was an acquisition finance done for about $500 million. Today, the exposure, the bank exposure over there is only $160 million. The coal mine is doing extremely well. The current coal prices are quite buoyant. Every year, we are getting about $100-$120 million as dividend flows on our 30% from that mine. Over a period of time, this exposure is gonna reduce down to almost zero in next 12-18 months. Having said that, we are in the process of refinancing this particular facility, and in a short period of time, the guarantee given by GIL in the refinancing process will also get removed. There are few such instances which are there, which honestly speaking, do not have any cause of any credit concern on GIL one. Because these are historical in nature, over next 6-12 months, will get removed either through divestment processes or refinancings that happen on some of those financings. Just to understand clearly, the total, you know, contingent liability/guarantee from GIL is INR 3,500 crore, and most of it appears to be on account of this one item, $500 million acquisition they'd taken at one point of time to finance the Indonesian asset. Anyway that debt is running down. Once that debt gets paid fully, there will be no contingent liability. I mean, nothing substantial, right? I mean, is that understanding right? Because $500 million is itself almost the INR 3,500 crore going to be. No, I think you've misunderstood. I had given the example of INR 500 million, which was a debt taken almost 10 years back to acquire that mine. Seven years back. Okay. Okay. Currently, that INR 500 million is down to INR 160 million, which I told you. Oh. The contingent liability only remains INR 160 million. Similarly, there are one or two other financings. In total, as I said, would be around INR 3,000-3,500 crores, which are there. These are assets which are well in the money or have cash flows supporting those exposures, and hence, in the refinancings will get removed over the next 6-12 months. That's what my indication to you. Okay, sir. Okay. Sir, final question. Will it be possible to share the breakup of consolidation between Delhi Airport, Hyderabad Airport, Goa Airport, which is under construction and other assets and the corporate debts? Atul, this is quite possible. You can always contact us. Broadly, if you look at the total debt today as of December in GMR Infrastructure is INR 20,000 crore. INR 18,000 crore is put together in airport, and the remaining is corporate. This is the broad breakup. The nitty-gritty details you can always contact the team and information can be provided. Okay. This is net debt. That is net debt, sir, basically. Okay, sir. Thanks a lot. Thank you. The next question is from the line of Apoorva Bahadur from Investec. Please go ahead. Hey. Hi, sir. Thank you for the opportunity, and congratulations on completing the demerger. Sir, you- Apoorva Bahadur, Saurabh sir, there is an echo coming from your line. Please check. I am hearing it quite okay. Hello? echo is coming, Saurabh. Is it better? No sir. Is it better? No, sir. There is an echo coming from your line. You'll have to then dial me in again. Dial me into my mobile. Okay, sir. I have nothing open right now over here. Okay. Okay now. Okay now. Let's move on. Okay, let's go ahead. Sure. Please go ahead. Yes, sir. At the beginning of your comments, you highlighted that we are now looking to go big in the airport ancillary service business. Sir, if I recollect correctly, in our previous calls we never really touched upon this. Just wanted to know what has changed or why this change in tactic, and what sort of an opportunity size you see over here. Parag sir, are you there? Shall I take it on so Parag will- Yeah, yeah. Please, please take it. Yeah. See, the adjacencies business concentration has been there for a quite long time. We have not been able to. I mean, we were not fully doing it. Now, the concentration of GMR Airports Limited is to develop the adjacencies in airport sector, especially our area of concentration four. One is the duty free, other one is the cargo, third one is the car park, fourth one is the master concession. There are the four areas identified by the business and where we want to do concentration. For example, in case of duty free, we have already started operating Kannur duty free outside GMR Group. As far as the master concession cargo, recently Goa has gone for a bidding, and where GMR Airports has bid and won the master concession of the non-aeronautical revenue as well as the cargo bid. Our endeavor is to develop all these businesses as BU's within the GMR Airports Limited and to develop these one as separate line of businesses apart from the airport operation. Okay. Okay. Fair enough. Would you like to put a number to this opportunity size over here? The number of the opportunities, the numbers are not very big as of today. For example, maybe, the Goa non-aeronautical revenue, the master concession and cargo may throw in a full year of operation maybe about INR 100 crore. Going forward, for example, in case of the duty free of the Kannur is doing about INR 30 crore. As and when the opportunities are coming up, including the DIAL and Hyderabad International, we wanted to build these businesses as separate BU, a separate line of expertise by the GMR. Okay. Just to come in over here. So far these adjacencies have run below the concession entities, right? Delhi will have its own, Hyderabad will have its own. What we have decided that we should do these businesses at the holding company limited. That allows us much greater flexibility in our businesses. As these businesses get scaled up, it also allows us to go to and offer and bid for third party businesses. Previously, because these were housed within the concessions, that flexibility was not available. Now this is available. The market opportunity is huge. All that we are demonstrating right now to you is that the confidence level is high. We have learned the ropes of this business and hence we would like to make these businesses also on a global scale. That's the guidance. Yeah. Within- Okay. These will be at GIL level and not GAL level? Sorry. No. It will be at GAL level, not at Hyderabad level or Delhi level or a Goa level. It will be at the GAL level. Okay. Very helpful. Sir, in your comments, you, I think, in response to a question, corporate guarantee and contingent liability, you said that a large chunk will follow for the next 6-12 months as a sector refinance or turnaround. My understanding is that INR 2,000 crore of this relates to Rajahmundry guarantee. Is there any possibility or any progress on monetization or possibly, sort of exiting that asset? The guarantee is about INR 1,000-odd crore for Rajahmundry. Having said that, there is a lot of traction as we speak with some of the divestment initiatives that we have taken. You know, a combination of sale of equipment and land is also another possibility. Work is moving ahead quite well. We are of course also awaiting some of the new guidance from the Government of India with respect to, you know, combined tariff for gas-based businesses and renewables like solar. That will add further potential to such divestments going forward. Things are moving ahead, and as I said, you should see substantial visibility of many of these transactions between next three-nine odd months. Earlier my indication was between 6-12 months, but some of these will happen even faster. Okay. Sir, also, now that the airport business is separate and probably two to three years down the line it will be quite free cash flow accretive, would you want to come out with a dividend policy so that I mean there's clarity for the minority investors as well, how GMR Infra will go about distributing profits. You're absolutely right. You know, as we look forward over the next two to three years, in some of the airports, there is going to be significant amount of cash accretion and significant amount of free cash for equity. We will be coming out with a dividend policy. Having said that, as you're aware, there is one more strategic action to be taken, which is with respect to the reverse merger of GMR Airports with GIL. You know, there is still one layer in between, which we would like to remove, which in our agreements with Groupe ADP will be undertaken in fiscal year 2025 after the testing of ratchets. By end of fiscal year 2025, GMR Airports would have reverse merged into GIL and hence that layer would also get removed. By that time, Hyderabad and some other assets should start throwing good amount of free cash and hence that would be the opportune time for us to announce our dividend policy for the shareholders of GIL. Okay. It's great to hear that. Sir, just one last question. Bookkeeping one, there are quite a few one-off in the non-airport business. You know, just, in the discontinued ops part, like in energy and other businesses. Can you please highlight what do they pertain to? Apoor, these one-off- Can we please put that conversation for a later date when we talk about non-airport business? It's going to be listed soon, so we will talk all about what those one-offs have been. Let this conversation be on the airport side. Now that it's a pure airport entity, let's talk about airport. Fair enough. Thank you so much. I'll get back in. All the best. Thank you. The next question is from the line of Shreyans Daga. He's from Barclays. Please go ahead. Hi. Hi, management team. Congrats on a good set of numbers. My question is a follow-up on Bharti Realty that was asked earlier. If I recall correctly, you mentioned that the contract with Bharti Realty has not been adjusted. In your presentation, it says there's been some adjustment. If you could shed some light on that. Secondly, based on the figures, I think you mentioned there isn't drawdown risk from that transaction. I guess if you could answer it, how much is currently outstanding from Bharti Realty? Thanks. Yeah. Can I? Hello? Hello? No.[crosstalk] Hello. Yes, Mr. Babu, please go ahead. Yes. Okay. That is pertaining to the amount which we have reversed. Bharti is pertaining to the 2019-20 amount, which we have recognized as income in the financials. Because of the delay in the final, the contract, the payment has been received only in September. The amount of revenue recognized in 2019-20 has been reversed. That is the only one of the items which has been reversed. As far as the Bharti transaction is concerned, the 4.98 million sq ft transaction is divided into two parts, 2.78 and 2.17. 2.78 entire full payment has been received by the end of September 2021 and accounted for in the books. That means almost the RSD, ADC, and one year of the lease rentals, annual license fee has been fully received and accounted. There are no dues from Bharti as of today. Entire amount has been issued as whatever the amount that has been agreed upon, entered into agreement, and handed over. The second phase of 4.98, that is INR 2.16 million, that will be taken over by Bharti between April 2023 to September 2023. They are bound to take it over. During that period, we'll get the balance payment pertaining to that land parcel. It is clear? How much approximate amount would that be? If you consider in April 2023, the balance 2.16 million sq ft, both the RSD, I mean the RSD plus ADC plus full license fee, three put together will be around INR 1,000 crore. INR 1,000 crore will be there. Okay. Sure. Thanks, sir. My second question relates to average tariffs. With regards to your CP with Airport Authority, could you give us some sense of how much is the year-on-year increase in average tariff for this year compared to the last year? The tariffs are already implemented as far as the Delhi is concerned, which are under base airport charges. There is no increase as far as base airport charges are concerned. They are the same number till March 2024, because this is the third control period tariffs. When it comes to the Hyderabad Airport, which has been now implemented, from 1st April 2022 onwards, the tariffs will jump. That will be currently INR 209 per yield per passenger will go up to INR 430 per passenger. Thereafter, it will keep going up substantial amount. That is clearly provided in the tariff. That is not a percentage amount. They have clearly defined how much is the UDF will go up year after year. That has been provided very clearly. Currently, 2022-2023, it is going to be INR 430 yield per passenger as against INR 209 currently we are charging. It is more than 100% jump will come next year. Okay. Sure. Thanks, sir. I'll inform that to the group state of Tamil. That's it for me. Thank you. Thank you. The next question is from the line of Mohit Kumar from DAM Capital. Please go ahead. Hello. Sir, thanks for the opportunity once again. Sir, in this slide number 25, you're given the nine-month FY 2022 consolidated EBITDA breakup. Do you have the similar number for FY 20 pre-COVID? Mohit, for all these numbers you can directly contact us. Yeah, sure. This will be very helpful. Sure. What is the capital expenditure you expect over FY 2022, full year and FY 2023 and FY 2024? Is it possible to share the number? All these data points, specific data points, whatever you need, you can always contact us. Sure, sure. I will get a look at it. Yeah. Those are my questions. Thank you and best of luck. Thank you. The next question is from the line of Aditya Mongia from Kotak Securities. Please go ahead. Hello, everyone, and thanks for the opportunity. I had a few questions from my side. I'll go ahead. The first question, which I had was, on the contingent liability. Just wanted some clarity that post, the rounds of refinancing that you were suggesting, let's say 12 months down the line, how much of the contingent liability will still be there? Just to again clarify, I'm not suggesting that it will be done 12 months down the line. I'm saying it will be all completed within next 12 months, so number one. Number two, in next 12 months we expect zero contingent liabilities, going forward. That is what our expectation is. Understood. That clarifies. The second question that I wanted to ask was to Mr. GRK Babu. Now, INR 430, which is the yield for Hyderabad for the first year, which is FY 2023, is it going to be static or is it going to be going up as he was suggesting over a five-year period? It will go up. It will go up 22, 23, 24, 25, March 2026. Only in the last quarter of March 2026, it will be reduced. Otherwise every year it goes up. Understood. The next question that I had was more at an overall level in terms of pledging. Now, that quantum was declining as the price point was moving up, and that quantum has started to increase again and is now close to about 40% of your overall shareholding. I wanted to get a sense of what is driving this quantum of share pledges up, and what is the thought process as in from an investment perspective it does become an issue that needs to be discussed at some level by the company, and that's I'm kind of seeking your opinion on this. Honestly speaking, I mean, I am responsible for the listed balance sheet and really cannot comment on the nature of pledging. I can give you this comfort that it could be some blip in the interim refinancings. The trend line will only reduce over the short and the medium term. That much of assurance I can give you. The promoters are committed in reducing the pledges and bringing them to a much more reasonable number over the next few months. I really don't know a specific reason why this blip has happened, but that much I can assure you that it is not for leveraging the equity and investing in some other businesses. It would be only limited to some of the refinancings that they may have in place. Understood. That's comforting. The other question that I had was that, prior to the demerger, the kind of dilution that was supposed to happen on the conversion of FCC was quite meaningful at about 20%. Could we kind of see through that kind of meaningful dilution again as a scenario if in case for GMR Infra in its current form, FCCBs were to be converted? Well, the equation remains the same. There's no change in the equation. If the conversion does take place, as you know that in the pre-demerger case it was at INR 18, right? That was the contracted value. So they're deeply in the money. If they were to convert, they will have to convert on both the sides of GMR Infra and GPUIL, and effectively there's a 10% dilution of the promoters in the entity. Understood. There'll be a 10% dilution in GIL as it stands today. Right. If in case that this event were to happen, right? Right. Correct. Got that. Those were my questions. I'll get back in the queue if I have more. Thank you. Thank you. The next question is from the line of Anshuman Ashit from ICICI Securities. Please go ahead. Thank you for the opportunity, sir, and congratulations on completing the merger, the demerger process. The first question is, can you please give us the gross debt figure as at the nine-month FY 2022 end? This is gross debt of the airport sector? Yes, of the demerged GIL. The gross debt for the airport, the net debt, which I've already given the figure, was close to INR 18,000 crore. The gross debt is close to about INR 24,700 crore for all the airport debt put together, for all the assets. Okay. Which means that today we have close to INR 6,300 crores of cash in all the assets put together. That's why the net debt is INR 18,000 crores. Okay. At the corporate level? If you look at the total net debt and the gross debt, there's so much difference. It is about INR 1,900 crores. Because gross and net is same, hardly small, about INR 100, less than INR 100 crores that is there. Sorry, less than about INR 10 crores that is cash is there. Net debt and gross debt at the corporate level is same. Second question is a clarification. We currently have discontinued the revenue sharing with AAI and we intend to start from FY 2023 onwards. Will we have to pay any retrospective basis also the revenue which we haven't shared for FY 2021 and 2022? No, it will not be. What we explained is that if we reach pre-COVID level of operation- Mm. The management may take a call about making the payment from next financial year. That decision has not been taken. However, as far as the 2021-22 current year, whatever the amount which we have not paid, that will be decided by the tribunal based on the final order only, the amount, whether we are going to get or nothing we are going to get is known. We are not expecting that we will get, we will be required to make any payment to the AAI. The next question is on the Goa Airport. We understand that the intention is to operationalize the airport by August. Is it on track? And secondly, when can we expect the tariff order to be issued related to the Goa Airport? Goa Airport is going to start the operations by August, as Mr. Saurabh Chawla has explained, that we will certainly have a domestic operation from September onwards full-fledged. As far as the tariffs are concerned, we have already filed our application with the regulator and we have discussed with them, because normally a regulator takes more than a year for a new greenfield airport to determine the tariff. He has assured us that by the time we start the operations in August, they will give an ad hoc tariff required to meet our operational and other expenses. Mm. After commissioning of the airport, within six months a final tariff order will be accepted. We will have some tariffs in the beginning, in the starting of the airport. That will should take care of all our operating and other requirements. Okay, sir. Sir, finally on the Kualanamu Airport which you've recently won, could you give us some details about the revenue sharing and the potential revenues which we can earn from it. Some detail, some color on the airport, some numbers which you could share. It is an airport which was in operation, 2018, we have acquired about INR 10 billion. This airport will be housed in a separate JVCo, and in that GMR will hold 49% and AP2 is the government entity which will hold 51%. That is the structure. The revenue share payable by this JVCo to AP2, I think we have already given the press statement, is about 18% revenue share payable. Okay, sir. Currently the airport is operational. Can you give us the passenger figure for FY 2021, if possible? FY 2021, it's at, I think it has been operating around 3 million. This was on the COVID level. Mm. FY 2020, current calendar. They follow the calendar year. Currently it is doing better. We understand it's about 5.5 million they are operating. Okay. Maximum that the airport can handle is around 10 million currently, without expansion? Currently they handle 10 million. Okay. The capacity that has been built is 12 million. We will be, soon after we take over the airport, we will start a refurbishment of the airport. We'll take the capacity to about 15-16 million within next 2 years. Okay. Is there any related CapEx also which we are required to invest in this in the airport when the airport is handed over to us? As of today, no. Because once the JV company is floated, where we take 49% stake and 51% taken by the AP2, the initial equity investment from our side will be around $13 million. After that, we don't have any financial commitment as of today. Okay. Thank you so much, sir. Thank you. The next question is from the line of Kelvin Heng from PineBridge Investments. Please go ahead. Hi. Thanks a lot for the presentation and for the call. I just wanted to check, you know, if you could maybe share some color on, you know, what is the funding plan for the remainder of this year for Delhi and Hyderabad Airport, just in light of what is remaining from the existing CapEx plan. You know, is there a need to return to the US dollar bond market later this year at either the Delhi or Hyderabad airport level to fund, you know, the remaining outlays? Okay. As far as the Delhi is concerned, we have already spent about INR 6,500 crore. In these two months, we may spend about a maximum of about INR 2 billion. We are still having sufficient cash, more than INR 20 billion Delhi only. Tapping the bond market, we'll look at it depending upon the market conditions. If there is any requirement, we'll certainly come to the market maybe after April, as far as the Delhi is concerned. Hyderabad is concerned, payments have been completed more than INR 45 billion. In these two months they may spend about one and a half billion. This airport, Hyderabad, is going to complete the entire construction by December 2022. Balance amount will be spent in the next financial year, will be around INR 20 billion. Hyderabad Airport as of today doesn't require any financing because we have completely tied up the entire financing of the Hyderabad airport. However, for any subsidiaries and additional requirement, if there is any cash requirement, we will tap the market maybe in the month of April onwards. Okay, understood. Thanks a lot. That's very helpful. Can you just remind me when is the expected completion date for the expansion of Delhi? That is September 2023. You might have heard already in the newspapers. We have partially opened the arrival terminal, new arrival terminal from the Terminal 1. We'll keep on opening up part by part. September 2023 will be the full opening of the entire airport. Okay, got it. That's perfectly helpful. Thank you. Thank you. The next question is from the line of Aditya Mongia from Kotak Securities. Please go ahead. Okay, thanks for the opportunity again. I had a few questions. I'll go ahead. A couple of them relates to the Indonesian asset. The government representatives from Indonesia, the minister over there actually have talked about very large numbers of investment that GMR Airports will be doing in this project over time. It will be useful if you could quantify that amount to us, for us to get a better sense of how much will be the outflow over a period of time into this project. I'm sorry, I could not understand. You are referring to Medan project? Absolutely. In Medan project, let's say over a certain period of time, how much would be the investment? I understand at the start of it won't be there. Over a period of time, how much will be the investment, going into that, project? The entire lifespan is about 25 years. The total estimated CapEx over 25 years will be in the range of $3.2 billion-$3.5 billion. This is equity plus debt, $3.2 billion-$3.3 billion? Total CapEx. As far as we are concerned, as per our estimates, except for the initial equity we are putting in and the requirement met from the promoters, it will have a sufficient cash flow to take care of its own expansion like Hyderabad Airport. Sure. Just to clarify on this one, when you say 3.2, 3.3, will this be from an equity perspective, whatever that amount is, will this be shared between the two entities, which are 49% and 49% shareholders? No, it is a JV company later. There's no shareholders involved. It's a JV company later. Understood. The related question on Indonesia, should we be assuming that it will be throwing up cash in the initial few years when you are not doing any CapEx and the- Yeah. -volume levels are normal? Yeah. Just to clarify over here, I think you're misunderstanding. What GRK Babu is saying is the total development cost of CapEx over a 25-year period. I think your question is how much of equity investment will go into it. Correct me if I'm wrong. It would be a good number to be having as to how much would GMR from an equity perspective be investing, let's say over the 25-year period in this asset. Well, 25 is a little longer period for me to give you guidance on, but over the next five odd years, where bulk of the development will happen, our investment will not be more than $120 million. Obviously, the JV partner will also contribute in that, and the balance will be leverage that will be taken. This is, notwithstanding the internal accrual, because this is an operating airport, right? Sure. The internal accruals will further supplement any requirement on the development side. Sure. It's a pretty limited equity investment in that airport. Sure. The third question that I was asking was should we be assuming that there would be internal accruals in this project at, let's say, once it comes back to pre-COVID levels, even after the revenue share that you have promised? Yes. It has sufficient because the revenue share payable is only 18%. It has brought them good revenue. We are going to expect our expertise is going to be used for development of a lot of non-airport revenues. The project itself will throw a good amount of cash that could be plowed back for expansion at Aurora website instead of resorting to the shareholder pocket. Sure. A subjective question from my side. Isn't it seems that Goa and Indonesia both appear to be good investment prospects for you. Would I be wrong in saying that Indonesia can be even better than Goa from the perspective of the value generation that happens over time, given the terms? Because obviously Goa is a higher revenue share also. That is- Sure. It's an obvious answer. Potentially, I would say yes, potentially. I will attribute it to certain geographical attributes that Medan brings to the table. If you look at the location of Medan, it is actually in direct competition with Changi and Kuala Lumpur. If you look at the traffic flow from Europe into that part of the world, it can be an alternate hub to these two destinations, and hence can be a very meaningful play going forward. That's the thought process in which we also identified this as a destination. That's how we had invested there. Now that is as far as geographic locations and traffic, but you should also look at Goa from the real estate side of it. I mean, as you are aware that, you know, airport is not merely earning tariff-regulated earnings, but also the non-tariff related, which could be the non-aero and also the real estate side of it. Goa offers a very compelling real estate side of it. You know, it is a fully environmentally approved land parcel around that for hospitality development, which, as you may be aware, Goa struggles to find hospitality rooms given the nature of environmentalists in that part of the world. You don't have hotel rooms coming up, but you have villas coming up, and those villas are extremely expensive. You have to view it more holistically. Yes, Medan, of course, offers a very compelling proposition to airlines as an alternate destination into the gateway of Southeast Asia. Understood. Now, the other question that I had was, I would assume from what I know that there will be more prospects beyond Medan for you and other operators to be bidding for in Asia, given the drive towards privatization that is happening over there also and the business model is uncertain. Completely agree, but there's also the opportunity. From a funding perspective, I also see that, from a GMR Airports perspective, there is still a standalone debt that is there. I'm trying to kind of grapple as to whether there is enough support that you would be having given the opportunities that may be coming up in India and Asia. If you could give us some sense of how you are thinking through from an opportunities perspective and from the perspective of you actually bidding for them. Well, that's a very fair question to ask. The response is multifold. Number one, I think we had alluded to earlier in our presentation that many of the adjacent businesses are now being brought out of the concession entities into the main entity, which is GMR Airports, right? That entity will no longer be just a merely holding company. It will be an operating company with many SPVs, and these are very fast-growing businesses which will be there. It will throw up cash. It will also have financing capacities available at GMR Airports going forward. That's number one. Number two is let's look at various opportunities that are coming in India and in Southeast Asia. Most of them are brownfield airports, do not require too much of equity outlay, requires lot of efficiency and have the ability to, you know, without recourse debt for the development of those concessions. We intend to play that strategy out going forward. Third is, as you are aware, there are many assets in our book now which are now maturing. We have the option, and I don't want to be pinned down on that. We have the option to monetize some part of equity of a mature asset and take that money and put into a development asset. You know, from an arbitrage perspective, you know, earn much higher returns on the same capital as I look at opportunities coming both in India and abroad. Last but not the least is you have to look at also that GMR Airports is a joint venture, so it is, you know, GIL, which will contribute some equity and ADP will contribute some equity. In our scheme of things like we did in the case of Delhi and Hyderabad early days, there is a lot of tailwind by many of the sovereign and pension funds who want to actually participate to on the equity side of it at the asset level itself. You know, a combination of many of these things will play out, which ensures that the current perceived lack of capacity of GMR Airports because of the debt of INR 3,000 crore on the GMR assets book does not become constrained and we do not lose out on the growth opportunity going forward. It will be a combination of these things that will be playing out. I cannot give you a very specific answer because that will be a little market sensitive from my perspective. Lastly on that, corporate debt that is sitting at this point of time, obviously there is no way of servicing it, given the state of affairs at the airports run from a CapEx perspective. Is there an end game over there that you would want to kind of elaborate on, to take that kind of stress out? We will be refinancing that debt. That is a process which is already underway, that will be refinanced. Like I told you earlier, you know, the stress comes because if it is not an operating entity in three years' time, GAL will be a very vibrant operating entity which has significant businesses in duty-free, in F&B, in cargo across India and across Asia. We need to keep that into mind. It will be very easily available to manage that debt. You also must take into cognizance that GAL also gets certain operating fee and management fee from the assets that it manages. Going forward, that will continue to play out. There will be a significant amount of predictable assured management fees coming from the airport assets to GAL for it to manage its own balance sheet. Again, multiple streams of income, cash income and also a recycle of capital and partnership will play out as GAL looks for further growth opportunities in India and Southeast Asia. Crystal clear and all the very best for three years from now. I hope that once things become a lot better and the reverse merger happens, it'll be a fantastic entity to see in terms of cash flows. Thank you. Absolutely. That is the journey approval that we are looking at is just a bridge to substantial value creation in fiscal year 2024, 2025 when you know all contracts get settled. Mr. Mongia, does that answer your question? Yes. Thank you. My questions are done. Thank you. The next question is from the line of Apoorva Bahadur from Investec. Please go ahead. Yep. Thanks again, sir, for the opportunity. Quickly, I think you highlighted that the conversion ratio for FCCB will be around 10%, I mean that the dilution at GMR Infra level. Can you explain the math over here? How does it change from 20%-10%? Can you just have this question taken offline and I would rather discuss it. It's just a math. Maybe Amit can email you the math on this. Sure. Thank you. There are different price points for the airport and different price points for GPUIL. He will send you the math as to why the promoter dilution is around 10 odd%. Okay. Thank you. All right. Thanks. Thank you. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Saurabh Chawla for closing comments. Yeah, thank you. Thank you everybody for participating in our Q3 call. Really appreciate your time. The IR team is available offline to answer your specific questions, especially those which we said that we will give you the further details. Please reach out to both Amit and Bishu and they will answer all questions. Look forward to your inputs going forward. We are sensitive to the inputs by the capital market players, and I can assure you that our strategy will get tweaked because we believe in value creation. As on date, any value created 63% do go to the promoters. We are working towards that. We are working towards asset light, capital light business model. The big CapExes are getting over. New opportunities will come, but those will be mostly in partnership, so they should start yielding good equity value for the shareholders. Last but not the least, the cherry on the pudding is the adjacent businesses that I've talked about. Look at it seriously. Look at what the duty-free throws at Delhi Airport and Hyderabad Airport, and when you start to extrapolate that into an independent business unit at GAL with the world as a platform, you will get a very different outlook. Look forward interacting with you offline and take care and be safe. Thank you so much. Thank you. Ladies and gentlemen, on behalf of GMR Infrastructure Limited, that concludes this conference call. Thank you for joining us. You may now disconnect your lines.