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Petronet LNG’s (PLNG) 2QFY2012 net sales increased by 75.5% yoy to `5,367cr
on the back of higher volumes and improved realization. Net profit increased by
98.5% yoy to `260cr. We maintain our Neutral view on the stock.
Robust volume growth and price increases drive sales growth: PLNG’s R-LNG
increased by 35.1% yoy to 135TBTU mainly due to increased spot and contracted
volumes. Contractual volumes stood at 91TBTUs and spot volumes stood at
44TBTUs. The company’s utilization stood at 106% at its Dahej terminal in
2QFY2012. Also, average realization improved by 29.7% yoy to `397/mmbtu.
On account of these, PLNG’s net sales grew by 75.5% yoy to `5,367cr.
Strong growth in net profit: EBITDA/mmbtu increased to `33.2 (up 21.9% yoy)
mainly on account of increased spot volumes, which have higher margins
compared to contracted volumes. Other expenditure increased by 278.1% yoy to
`99cr. Hence, despite higher growth in net sales, EBITDA increased by only
64.5% yoy to `448cr and EBITDA margin declined marginally by 56bp yoy to
8.4% in 2QFY2012. Other income increased by 8.2% yoy to `20cr, while tax rate
decreased to 30.8% in 2QFY2012 compared to 32.3% in 2QFY2011. Hence, the
company’s net profit grew by 98.5% yoy to `260cr.
Outlook and valuation: For 2QFY2012, PLNG reported strong revenue and profit
growth. However, the company’s capacity utilization at Dahej terminal (106%)
almost peaked in 2QFY2012, indicating a further increase in volume growth will
remain capped in the near term. Nevertheless, demand for natural gas remains
robust in India, while domestic supply fails to meet the shortfall, thus boosting
prospects for PLNG’s business. However, we believe the current rich valuations
discount the robust growth prospects of PLNG. The stock is currently trading
at 11.8x FY2012E and 11.7x FY2013E EPS. We maintain our Neutral view on
the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Petronet LNG’s (PLNG) 2QFY2012 net sales increased by 75.5% yoy to `5,367cr
on the back of higher volumes and improved realization. Net profit increased by
98.5% yoy to `260cr. We maintain our Neutral view on the stock.
Robust volume growth and price increases drive sales growth: PLNG’s R-LNG
increased by 35.1% yoy to 135TBTU mainly due to increased spot and contracted
volumes. Contractual volumes stood at 91TBTUs and spot volumes stood at
44TBTUs. The company’s utilization stood at 106% at its Dahej terminal in
2QFY2012. Also, average realization improved by 29.7% yoy to `397/mmbtu.
On account of these, PLNG’s net sales grew by 75.5% yoy to `5,367cr.
Strong growth in net profit: EBITDA/mmbtu increased to `33.2 (up 21.9% yoy)
mainly on account of increased spot volumes, which have higher margins
compared to contracted volumes. Other expenditure increased by 278.1% yoy to
`99cr. Hence, despite higher growth in net sales, EBITDA increased by only
64.5% yoy to `448cr and EBITDA margin declined marginally by 56bp yoy to
8.4% in 2QFY2012. Other income increased by 8.2% yoy to `20cr, while tax rate
decreased to 30.8% in 2QFY2012 compared to 32.3% in 2QFY2011. Hence, the
company’s net profit grew by 98.5% yoy to `260cr.
Outlook and valuation: For 2QFY2012, PLNG reported strong revenue and profit
growth. However, the company’s capacity utilization at Dahej terminal (106%)
almost peaked in 2QFY2012, indicating a further increase in volume growth will
remain capped in the near term. Nevertheless, demand for natural gas remains
robust in India, while domestic supply fails to meet the shortfall, thus boosting
prospects for PLNG’s business. However, we believe the current rich valuations
discount the robust growth prospects of PLNG. The stock is currently trading
at 11.8x FY2012E and 11.7x FY2013E EPS. We maintain our Neutral view on
the stock.
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