KOCHI: Cochin International Airport Ltd (CIAL), the most revered public private partnership (PPP) project in the state, has witnessed a 54.43 per cent jump in its net profit from Rs267.17 crore to Rs412.58 crore for the financial year 2023-24 (FY24).
Dividend at 45%
The board has recommended a dividend of 45 per cent on the paid-up capital for the year under review subject to the shareholder ratification. This would mean Rs4.5 per share of Rs10, and the company would require Rs215.20 crore for the dividend payout.
Grey market buzzing
“The shares of CIAL are being exchanged in the grey market at around Rs400 and upwards,”Jinto Kunjumon, director, Capitgnus Synidicate, told businessbenchmark.news.
Kunjunmon said the shares used to be traded at around Rs250 only about a year ago; all of a sudden, about five months ago, the enquiry for the shares became brisk, pushing up the price.
Book value around Rs60
Quite enigmatically, the book value (BV) of CIAL share, even after accounting for this year’s profit, is only around Rs60. A former finance professional involved in an airport project told this writer, ‘People who are buying at Rs450 and upwards are just being crazy.”
At the same time, the call for listing of CIAL shares from the ordinary shareholders is also intensifying, according to informed sources.
“In the absence of an official market for CIAL shares, as they are not listed on any stock exchange, while ‘certain people’ stand to make a killing, numerous unsuspecting investors remain clueless, unsure of whether to sell or buy or hold,” the financial analyst said.
Revenue growth
The surge in CIAL net profit has primarily been driven by the growth in revenue, which improved by 25.25 per cent from Rs759.37 crore to Rs951.10 crore.
At the same time, the total income of CIAL for the financial year FY24 soared from Rs770.91 crore to Rs1014.21 crore on the back of a decent ‘other income’ valued at Rs63.11 crore earned by CIAL during 2023-24 (FY24).
Total expenses during the period increased from Rs413.60 crore to Rs461.84 crore, at a rate far lower than the increase in revenue logged by the company for the period.
User fee soars
While the aero revenue increased from Rs478.85 crore to Rs620.43 crore, the user development fee (UDF) or User Fee, during the period soared by two-thirds, from Rs114.60 crore to Rs189.78 crore. Interestingly, the User Fee accounted for almost 31 per cent of the company’s aero revenue for the period under review.
Ambitious projects
During the financial year 2023 -24, CIAL has completed several significant projects that will further enhance its infrastructure and service capabilities.
“The completion of the Import Cargo Complex marks a milestone in our expansion plans, facilitating smoother and more efficient cargo operations. Moreover, we have embarked on seven mega projects that are set to transform our airport into a state-of-the-art facility,” Pinarayi Vijayan, the chief minister, who’s also the chairman of CIAL stated.
Share capital
The share capital of CIAL increased from Rs382.58 crore to Rs478.22 crore during the financial year 2023-24 following the 1:4 rights issue the company concluded during the said period.
