Ladies and gentlemen, good day, and welcome to GMR Airports Infrastructure Limited's conference call to discuss Q3 FY 23 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 of 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. Over to you, sir. Thank you. Good afternoon, ladies and gentlemen. Thank you all for joining the Q3 fiscal 23 earnings call. During the Q3, global economies continued to face headwinds on multiple fronts, including inflation and high interest rates. The Indian economy continued to show resilience. Inflation levels receded as Wholesale Price Index inflation stood at 4.95% as in December 2022 from 10.7% in September 2022. The WPI further eased to 4.73% in January 2023. GST collections continued to be at higher levels given that the post-COVID economic recovery as monthly collection for January 2023 stood at INR 1.56 lakh crores. Other economic indicators were also mostly positive and encouraging. Recent Union Budget announcement is also expected to act as an enabler for growth. Capital investment has been increased for the third year by 33% to INR 10 lakh crore, which is equivalent to about 3.3% of GDP. On the airport sector, 50 additional airports, heliports, water aerodromes, and advanced landing grounds will be revived for improving the regional air connectivity. This will provide huge opportunity for airport operators, including GMR. Regarding our performance, for Q3, GMR Airports gross revenue increased by 29% year-on-year to INR 1,766 crore in Q3 this year, driven mainly by traffic improvements in our operational airports. EBITDA, however, decreased by 26% year-on-year to about INR 530 crore, mainly as we started paying monthly annual fee with effect from April 2022 prospectively. On a QonQ basis, EBITDA increased by 20%. Amongst our operational airports, Hyderabad Airport for the past three consecutive quarters has contributed positively to our consolidated profit after tax. During nine months of fiscal 2023, Hyderabad Airport registered a PAT of INR 91 crores versus loss of INR 72 crores during the same nine months last year. Please note that the Hyderabad Airport EBITDA and PAT for the nine months, for this current year, include the one-off loss of about INR 60 crores from settlement of derivative instruments related to the partial repayment of bonds due in 2024 and 2026. Adjusted for this one-time loss, Hyderabad PAT stood at INR 151 crore for the nine months of the current fiscal year. I would further like to highlight the following points. As you know, we have signed a deal with Aboitiz InfraCapital for divestment of our stake in Cebu Airport. During the quarter, we received INR 1,390 crores against this divestment. It is important to note that we would continue to operate as technical services provider to Cebu till December 2026 and would also be entitled to additional deferred consideration based on the subsequent performance of the airport for the same period. During the quarter, GMR and National Investment and Infrastructure Fund also decided to enter into a financial partnership. This is the first investment of NIIF in Indian airport sector. We will be investing in three airport projects, including Goa, Bhogapuram, which is Visakhapatnam Airports. The transaction envisages NIIF making a primary investment of INR 631 crores in the form of compulsory convertible debenture in GMR Goa International Airport Limited, a special purpose vehicle to run and operate the new Goa Airport. This investment shall be NIIF's first investment, as I said earlier, in the airport sector in the country. It will be their first direct investment in the state of Goa. On the overall passenger traffic for the GMR Airports, Q3 represented a strong growth in traffic. Passenger traffic was up by 37% year-over-year to 25.8 million passengers in Q3 fiscal year 2023, with Delhi and Hyderabad experiencing good surge in traffic. Domestic traffic at Delhi Airport reached a high of 102% of 2019 levels during December 2022, aided by travel from friends and family segment of the businesses and tourism, while international traffic touched about 56%. Traffic from North America, the Middle East, and Europe continued to grow beyond the pre-COVID levels. Recovery is mainly aided by traffic to and from Southeast Asia countries, including Thailand, Singapore, and Malaysia. At Hyderabad Airport, domestic traffic reached 94% versus 2019 traffic levels during December 2022. Aided by friends and family travel. Corporate travel has picked up, still lagging behind the 2019 levels. International traffic, on the other hand, has touched 90% mark, the recovery is supported by the rising Southeast Asian tourist traffic, mainly Singapore and Thailand. Singapore Airlines converted a few narrow-bodied flights to wide-bodied flights, while Thai Airways resumed wide-body operations out of Hyderabad. On progress with respect to capacity expansions in our airports, Delhi, Hyderabad, and Goa airports achieved 80%, 81%, and 98% completion as of December 31st, 2022. As on January 31st, 2023, Delhi, Hyderabad, and Goa achieved 81.6%, 82%, and 98.7% of the CapEx progress. At our Goa airport, domestic operations have already commenced from January 5th, 2023, and works related to the international area are in progress. IndiGo, Akasa, GoAir, SpiceJet, and Vistara are already operational. Goa is currently serving 10 domestic destinations. International flights are expected to start from March 2023 with commencement of summer schedule. In our Hyderabad airport, the East Pier portion, which was handed over during Q1, was commissioned in Q2, while the West Pier, that is the international side, was handed over during Q3 of fiscal year 2023. Delhi and Hyderabad airports are targeted for completion in September 2023 and March 2023, respectively. On the airport development, as you're aware, during Q 2, Chalet Hotels Limited was awarded a contract by Delhi International Airport Limited, DIAL, to develop a hotel with 350 to 400 rooms at the terminal three. The transaction is progressing in line with the contractual terms. In Hyderabad Airport, pursuant to the execution of sublease deed with the Amity for 20 acres of land during Q 2 for setting up a university at Aerocity Hyderabad, the land has been handed over now to Amity. Amity also has an option for additional 5 acres of land for school to be exercised within 12 months from the date of execution of the sublease deed for the 20-acre land. In Goa Airport, we have initiated land monetization for two hotel plots next to the new Goa Mopa International Airport terminal building. We expect the transactions to be closed during the current quarter as we go forward. In Crete Airport, we achieved physical progress of 17% as of December 2022. Works are progressing on multiple fronts: runway, taxiway, aprons, terminal building, and other buildings, and on the access roads. Terminal building base slab concreting work has been completed. Concreting work on columns and mezzanine level slabs are currently in progress. Flood protection work is in progress in airport and access roads. On the Medan Airport, Angkasa Pura Aviasi, APA, the joint venture company of GMR Airports Limited and Indonesian state-owned airport operator, which is Angkasa Pura II, formally took over the operations of Medan Airport beginning July 2022. On a year-on-year basis, traffic is up 3.7x to about 1.45 million passengers in Q 3 of fiscal 2023. Domestic daily packs has already reached 97% of the pre-COVID level, while international packs was over 89% as of December 2022. Currently, 18 domestic and six international destinations are connected. As you are aware, Ministry of Transport of Indonesia has already approved rise in domestic passenger service charges by 27% and international passenger service charges by 16% with effect from August 1st, 2022. In Nagpur Airport, we expect execution of the concession agreement at the earliest. In Bhogapuram Airport, EOI has been received for EPC contractor selection, RFP has been issued to the shortlisted parties. Land acquisition is in advanced stages of completion by the government. RNR works are in progress. On financial closure, project appraisals are underway by consultants appointed by lead lenders. On the ESG front, our endeavor is to reduce the impact of our operations on the surrounding environment by implementing best practices environmental controls. Environmental protection and sustainable development has always been our high priority. Our Delhi and Hyderabad airports have maintained an ESG score of five during the quarter. Delhi Airport was also awarded the busiest airport of the year fiscal 2022, and the best sustainable airport at the ASSOCHAM 14th International Conference and Awards on Civil Aviation. Hyderabad Airport won the gold recognition at the CII Excellence Summit in November 2022 for business excellence journey. The presentation with all financial numbers are already available with you. If not, you can download it from our investor relations section on the website. We are available to respond to your questions on this call and offline subsequent to the call. Now I would like to open the forum for queries that will be addressed by my colleagues from the corporate and the business teams. Thank you so much. Thank you very much. We will now begin the Q&A session. Anyone who wishes to ask a question may press star and one on the 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 from the line of Mohit Kumar from DAM Capital. Please go ahead. Yeah, good afternoon, sir, and good to see a very, very good recovery in traffic. Three question on my side. First is, two question on the financials. First is, can you please explain the exceptional income booked during the quarter? In the most accounts, nothing is mentioned about this, you know, particular income of INR 3 billion which you've booked. Yeah. Hi. This exceptional income is on account of the disposable of partial equity investment in the Cebu. That has been recorded as an exceptional item in the still financial statement. Okay. Part has been booked in this quarter, part has booked in last quarter. Am I right? Yeah. Understood. No, no. This is the first it is partially booked in this quarter. Balance unlocked shares we will record in 2024. Understood, sir. Secondly, the SLA, you spoke about INR 600 million which you booked as exceptional expense in Hyderabad regarding some derivative transaction for the bond. Has it been booked entirely in this quarter, or it is for the entire 9 months? It looks like this is the number is for the particular quarter. Can you confirm that? This is one time charge. This is basically the Hyderabad Airport has gone liability management. We have repaid $140 million of the international bonds by raising the domestic paper. In that cost, thanks to whatever the derivative instrument we have already created, a versus amount realized, the difference amount has been charged to P&L account, but there is no really, there is no cash outflow as such. It is only a notional entry. This happened in this quarter, right? Entire, entire amount. Entire amount. Entire amount is this time only one time process. It's not that for the same transaction more bookings will be done during this- No, no. Only one. No, no. No, no. I was just asking because Hyderabad Airport EBITDA is lower QoQ, and I think the operating expense is higher. This I'm assuming that this INR 60 crore expense has been booked in the Hyderabad Airport in this quarter. Is that right? Yes, correct. Understood. Lastly, sir, what is the CapEx and debt capitalization possible for Delhi and Hyderabad Airport, especially in FY 2024? The entire Hyderabad Airport will be completed the capitalization by June 2023. Delhi Airport is expected to complete by September 2023. Capitalization will happen in 2023/2024 financial year. What will be the CapEx number capitalization in June 2023 for Hyderabad and the debt, corresponding debt to that? The total Hyderabad CapEx program is about INR 6,700 crores. The entire amount, of course, partly it is getting capitalized, and the full capitalization will be done by June 2023, is about including what has already been capitalized, will be around INR 6,600 crores. The entire debt has already been tied up. The money is already there in the bank account. There is no need to further raise any further debt. Delhi is INR 100 billion? Is that the amount? Sorry? On Delhi. In Delhi, the amount is INR 10,000 crore. It is about INR 11,500 crores. Understood, sir. Thank you, sir, and best of luck. Thank you. Thank you. Ladies and gentlemen, to ask a question, you may press star and one. The next question is from the line of Aditya Mongia from Kotak Securities. Please go ahead. Yeah. Just checking that I'm audible to you. Yeah, yeah. Got that. Actually, I'm just trying to kind of focus more on the non-aero part of the Hyderabad airport on the NON-AER spaces. It seems as if numbers over the last three years have, you know, quite meaningfully improved whether we see non-aero or retail. If you could explain why this kind of uptick is happening and should we not assume further uptick happening from here on as you open up your new retail space at Hyderabad Airport? Rajesh, why don't you take this? See this increase or improvement that we are seeing in non-aero revenue in Hyderabad, it's a combination of a couple of things. One, the quality of passenger traffic has improved. That is one contributor. Secondly, a bit of refresh on the retail side which has happened, and also we have kind of expanded the retail area. You know, if you would have traveled recently to Hyderabad, you would have seen on the land side, there are a number of retail outlets, including F&B outlets which have come up. These are the three main contributors for improvement in the non-aero revenue over the last few quarters that you would have seen. We firmly believe that this is the trend, we should keep seeing it as we go along. Okay. I think just a follow-up question. Let's say on a nine-month basis, retail spending at Hyderabad is, let's say INR 60 odd rupees per pax versus it being, almost INR 110 odd rupees in Delhi. Do you see a sense of whether these numbers would be converging over time? Because obviously the difference was a lot larger earlier, now it is lesser. I'm just trying to get a sense. Yeah. For each of the airports, you know, it all depends on the quality of the passenger traffic. Just to point in reference, when you look at, say, Delhi, the sales per pax, SPP that we call it for the duty-free business, is close to about $13. I'm talking about more in terms of dollars. Hyderabad is close to now about $7 to $8, you know. We have seen that this has moved up from $4 to $8 in Hyderabad, and similarly in Delhi from about $8 to $13. That, that's the. Again, these numbers will, you know, as the quality of passenger traffic keeps improving with their offerings, you'll definitely see the numbers moving up. Whether Hyderabad will be able to do exactly like Delhi, I think that, again, it is dependent on the quality of passenger traffic, as I said. Would it be fair to assume that, the handicap of there being, let's say, limited space was a lot more in Hyderabad than Delhi so far, and if that will start kind of opening up a lot more for Hyderabad? Yes. Yes. Yes, you're right. You're right. I think, since we are now expanding our footprint in Hyderabad, that is going to be one enabler for, you know, improving this. Also, you know, you need to keep into perspective, as I keep highlighting to you is as these become whether international hubs or regional hubs, Right. I mean, yesterday's announcement by Air India is very heartening towards that step. Mm-hmm, mm-hmm. As they start to gather pace of, you know, long-distance, you know, wide-body aircraft that fly, like Rajesh mentioned, the quality of passenger, the clawback to the spend that usually happens in other international heads starts to come back to the Indian airports. This will have, I would say, a long-term improvement in improving our SPPs. There could be some dips or surges on a quarterly basis, but on a long-term basis, it's a very positive, you know, I would say, forecast as we go forward. Well said. Sir, there's a last question on my side. What are the refinancing rates that are today on offer at the current repo for Delhi and Hyderabad? I'm sorry, the, y ou are talking about the refinancing? Yeah, the fact that you are probably nearing the end of your construction period, is there a scope of interest rates going down for these assets here? See, Hyderabad Airport is concerned that whatever the fund required for the expansion has already been raised, and we'll keep refinancing the bonds which are falling due as and when. Sure. For example, 2024, the bond is falling due of the INR 300 million. Out of that INR 140 million we have already done the liability management in December by raising domestic paper at 8.8% quarterly interest. And we are also planning to have another liability management shortly. And the bonds will be refinanced as and when they fall due, and depending upon the cash flows are sufficient, we may repay them, otherwise we go for the refinance. 9% below rates are possible. We have already got at 8.8% quarterly interest in Hyderabad. It is about INR 1,150 crores we have raised. Nitin, the key over here is not 9% or 8.8%, the key is what is the saving that we have Yeah. versus the quoted dollar bonds that we have outstanding. We need to look at from that perspective. you know, again, there has been recently been some disruption on the Indian paper for very different reasons. Obviously, the Indian name does get impacted in the credit markets. We use that as an opportunity in our liability management. We go for the long-term, long tenure bond. The December, what we did, that INR 1,150 crores was a 10-year paper. Mm. Interest rate is fixed for five years. Got that. Those are my questions. Thanks a lot for your responses. Thank you. Question is from the line of MTR from Barclays. Please go ahead. Thank you very much. I just have one question with regards to the status of the legal issue with regards to the force majeure, your revenue share, between 2020 and 2021. What's the status on that? When do we expect some form of final resolution? The status is basically the cross-examination is going on right now. That is, arguments by the lawyers are going on. It is expected the timelines have been extended up to August of 2023. We expect the final award before August. That is about around July month. July. Okay. Thank you. Thank you. Before we take the next participant, reminder to everyone, anyone who wishes to ask a question may press star and one. The next question is from the line of Nikhil Abhyankar from DAM Capital. Please go ahead. Thanks for the opportunity, sir. I've got a couple of questions. You mentioned in your opening remarks about the Amity University developing a parcel of land in Khail. Can you just give some more details of this project? This is basically a university which is being set up by them on a 20 acres plot. The entire payment more or less has already been received. There is some deferred payment to be received. It is a long term. They are setting up the university. We have already started operations on next shift. Between 1.5 years to two years, the entire campus will be ready. What are the payments that they will receive, sir? It is about INR 880 crores to INR 100 crore rupees. Annually? No, that is the full amount for the entire 20 acres. Okay. Sir, the second question is regarding the CCD, 631. After the conversion of these debentures, what will be the stake of AIC in GGIAL? It is 49%. 49%? Yeah. To, up to 49%. It could be, it could be lower depending upon how the project progresses. Understood. Okay, sir. That's all from my side. Thank you. Ladies and gentlemen, to ask a question you may press star and one. Participants, you may press star and one to ask a question now. The next question is from the line of Lakshmana Rao Meka, an individual investor. Please go ahead. Congratulations for a good set of numbers, sir. I just want to know about Nagpur Airport, why it is. Your voice is not that clear. Yeah. Is it clear now, madam? Yes, please go ahead, sir. Yeah. I just want to know about Nagpur Airport, why it is taking that long to start operations? Sorry, your voice is not clear. Very muffled. We can't understand your question. Sorry. Hello, can you repeat the question? Yeah. I just want to know about Nagpur Airport, why it is taking so long to take the operations, sir? Nagpur Airport, after Supreme Court final judgment, the government again has filed for a curative petition, so it will be disposed of. It is likely to be disposed of in another one or two months. Thank you. Thank you. Ladies and gentlemen, this was the last question for today. I would now like to hand the floor over to the management for closing remarks. Thank you, friends. Thank you for joining our call for the Q 3 financial results. The team, of course, is available offline should you have any specific queries regarding our strategy, our balance sheet, we'll be happy to answer. Thank you so much for joining in. Thank you. Bye-bye. Thank you. On behalf of GMR Airports Infrastructure Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.