Kannur International Airport Limited Unlisted Shares
Buy - ₹120.00
Sell - ₹140.00
About Kannur International Airport Limited Unlisted Shares
1. About Kannur International Airport Limited (KIAL)
Kannur International Airport Limited (KIAL) is a public company established under the patronage of the Government of Kerala. The primary objective of the company is to develop and operate an international standard airport in Kannur, catering to the travel demands of a dynamic and diverse population. The airport is specifically designed to serve a large number of non-resident Indians (NRIs) from Kerala, the local business community, and a growing number of tourists attracted to the region’s natural beauty and rich cultural heritage.
The airport was officially commissioned on December 9, 2018, and is Kerala’s second greenfield airport, built under the Public-Private Partnership (PPP) model. As the fourth international airport in the state, Kannur International Airport plays a crucial role in enhancing the connectivity of northern Kerala and neighboring states like Karnataka and Tamil Nadu. It stands as a significant infrastructure project that contributes to the region’s economic development and tourism growth.
2. Business Divisions
Kannur International Airport Limited operates primarily through its airport operations division, which focuses on:
- Passenger Services:
The airport is a hub for both domestic and international travelers. It handles a wide range of services such as check-in, baggage handling, lounges, and other amenities, ensuring a smooth experience for passengers. - Cargo Services:
In addition to passenger services, KIAL provides cargo handling and logistics solutions. This division helps foster trade and business by enabling efficient exports and imports for local industries and businesses. - Tourism & Hospitality:
The airport’s strategic location boosts tourism in northern Kerala. The airport supports the local tourism industry by providing improved accessibility for both domestic and international tourists, who are drawn to the region’s scenic landscapes, cultural heritage, and festivals. - Commercial Ventures:
KIAL also manages commercial spaces within the airport, including retail outlets, restaurants, and other services. This generates additional revenue streams and supports the overall business model of the airport
3. Financial Highlights
Here are some of the key financial highlights for Kannur International Airport Limited, based on its recent Profit and Loss (P&L) statement:
- Revenue Performance:
Kannur International Airport reported a revenue of ₹99 crores in FY 2024, a decrease from ₹113 crores in FY 2023. The revenue has fluctuated due to operational challenges, but the airport’s passenger and cargo services are expected to drive future growth. - Gross Margins:
The airport’s gross margins for FY 2024 stood at 35.35%, showing a decrease compared to the previous year’s 50.44%. This decline can be attributed to increased operational costs and the airport’s ongoing efforts to enhance infrastructure. - EBITDA:
Kannur International Airport reported an EBITDA of ₹10 crores in FY 2024, down from ₹26 crores in FY 2023. Despite the decrease, the airport remains focused on improving its cost efficiency and profitability in the long term. - Profit After Tax (PAT):
The airport incurred a PAT loss of ₹169 crores in FY 2024, compared to a loss of ₹126 crores in FY 2023. These losses reflect the high initial operational costs, but the company is expected to move towards profitability as passenger traffic continues to grow. - Assets and Liabilities:
KIAL’s total assets stood at ₹1,904 crores in FY 2024, with a corresponding total liabilities of the same amount. The company’s liabilities primarily include borrowings for infrastructure development, which will be repaid over time as the airport’s operations scale up and profitability improves.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Strategic Location: Serves as a vital gateway to northern Kerala, enhancing regional connectivity for passengers and cargo.
- Robust Growth Trajectory: Impressive early growth, surpassing 1 million passengers in 9 months, showcasing strong regional demand.
- Boost to Local Economy: Supports tourism, business growth, and employment in northern Kerala, contributing to socio-economic development.
Cons
- High Operational Costs: Significant initial investments lead to short-term losses and high operational expenses impacting profitability.
- Dependence on Passenger Traffic: Fluctuations in demand or external factors like economic downturns can affect revenue generation.
- Low Profitability: The airport has been experiencing losses with a negative profit after tax, challenging short-term investor confidence.
