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UBS Investment Research
Mundra Port and SEZ
Q3FY11 results: slightly ahead of estimates
Recurring PAT up 45% YoY; EBITDA margin for Q3 at 68%
Mundra Port reported Q3 revenues of Rs4.5bn (+33% y/y, UBS-e Rs4.4bn),
operating profit of Rs3.1bn (+33% y/y, UBS-e Rs3bn) and pre-ex PAT of Rs2.3bn
(+45% y/y, UBS-e Rs2.2bn, consensus estimate of Rs2.3bn). Adjusting for SEZ
income, we estimate EBITDA margins at about 68% (in-line with our estimates).
In 9mFY11, revenues at Rs12.8bn were up 32% YoY, operating profit at Rs8.7bn
was up 27% YoY and recurring PAT at Rs6.5bn was up 33% YoY.
SEZ upfront lease income of ~Rs80m, contract income negligible
SEZ lease income in Q3 was Rs80m and the contract income for the quarter was
negligible. Revenue/EBITDA per ton has increased to Rs333/227 in 9mFY11 from
Rs305/206 in FY10, primarily due to lower proportion of crude handling and
higher proportion of bulk handling.
Q3 volumes up 26% y/y; container volumes increase 44% YoY
MPSEZ handled 12.4mt in Q3FY11 (+26% y/y), led by container tonnage (+44%
y/y- 3.9mt from 2.7mt), coal (+45% y/y to 2.9mt from 2mt) and fertilizer (+51%
y/y- 1.1mt from 0.8mt). Volumes across categories witnessed strong growth except
crude volumes which declined 27% y/y. Crude volumes in the quarter were lower
due to expansion-related works at the Panipat refinery, which got completed in
mid-December. 9mFY11 volumes were up 26% y/y at 37.6mt, led by coal (+50%
y/y, 9.4mt) and container tonnage (+37% y/y, 11.1mt).
Valuation: Buy rating
Our valuation comprises 1) Port- Rs155, 2) SEZ- Rs20 and 3) Investments- Rs13.
Mundra Port And Special Economic Zone
Mundra Port and Special Economic Zone (MPSEZ) is one of the largest noncaptive
private sector ports in India. It has a concession to operate the port until
FY31. The port has a deep draft and is closer to the northern hinterland than
some other western ports. It has effective handling capacity of 50-55mtpa and
can handle diverse cargo. MPSEZ is developing a special economic zone, which
has a notified area of about 14,600 acres.
Statement of Risk
We believe the key risks for MPSEZ include: dependency on a few big
customers to generate a large proportion of revenue; slowdown in cargo volume
growth; capacity expansion at existing ports and development of new ports; and
delays in private sector capex plans impacting SEZ land monetization.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Mundra Port and SEZ
Q3FY11 results: slightly ahead of estimates
Recurring PAT up 45% YoY; EBITDA margin for Q3 at 68%
Mundra Port reported Q3 revenues of Rs4.5bn (+33% y/y, UBS-e Rs4.4bn),
operating profit of Rs3.1bn (+33% y/y, UBS-e Rs3bn) and pre-ex PAT of Rs2.3bn
(+45% y/y, UBS-e Rs2.2bn, consensus estimate of Rs2.3bn). Adjusting for SEZ
income, we estimate EBITDA margins at about 68% (in-line with our estimates).
In 9mFY11, revenues at Rs12.8bn were up 32% YoY, operating profit at Rs8.7bn
was up 27% YoY and recurring PAT at Rs6.5bn was up 33% YoY.
SEZ upfront lease income of ~Rs80m, contract income negligible
SEZ lease income in Q3 was Rs80m and the contract income for the quarter was
negligible. Revenue/EBITDA per ton has increased to Rs333/227 in 9mFY11 from
Rs305/206 in FY10, primarily due to lower proportion of crude handling and
higher proportion of bulk handling.
Q3 volumes up 26% y/y; container volumes increase 44% YoY
MPSEZ handled 12.4mt in Q3FY11 (+26% y/y), led by container tonnage (+44%
y/y- 3.9mt from 2.7mt), coal (+45% y/y to 2.9mt from 2mt) and fertilizer (+51%
y/y- 1.1mt from 0.8mt). Volumes across categories witnessed strong growth except
crude volumes which declined 27% y/y. Crude volumes in the quarter were lower
due to expansion-related works at the Panipat refinery, which got completed in
mid-December. 9mFY11 volumes were up 26% y/y at 37.6mt, led by coal (+50%
y/y, 9.4mt) and container tonnage (+37% y/y, 11.1mt).
Valuation: Buy rating
Our valuation comprises 1) Port- Rs155, 2) SEZ- Rs20 and 3) Investments- Rs13.
Mundra Port And Special Economic Zone
Mundra Port and Special Economic Zone (MPSEZ) is one of the largest noncaptive
private sector ports in India. It has a concession to operate the port until
FY31. The port has a deep draft and is closer to the northern hinterland than
some other western ports. It has effective handling capacity of 50-55mtpa and
can handle diverse cargo. MPSEZ is developing a special economic zone, which
has a notified area of about 14,600 acres.
Statement of Risk
We believe the key risks for MPSEZ include: dependency on a few big
customers to generate a large proportion of revenue; slowdown in cargo volume
growth; capacity expansion at existing ports and development of new ports; and
delays in private sector capex plans impacting SEZ land monetization.
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