Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Click here for PDF LINK
S t a b l e p e r f o r m a n c e
Essar Ports (EPL) was demerged from Essar Shipping and Ports Ltd
(ESPLL) in June 2011. The existing company operates only the port
business. For Q3FY12, EPL reported a stable performance. Revenues
were flattish on QoQ basis and declined by 1% to | 272 crore while net
profit increased by 10% to | 45.0 crore. EBITDA declined by 5% to |
214.4 crore due to a 344 bps decrease in EBITDA margin to 78.9%.
Revenues and EBITDA have been subdued during Q3FY12 owing to shutdown by Essar Oil to expand its refinery to 18 million metric tonne per
annum (MMTPA).
During Q3FY12, volumes handled on a QoQ basis increased by only 2%
to 9.94 million metric tonne (MMT). Average realisation increased to |
237/tonne in FY12 from | 185/tonne in FY11. In Q3FY12, Vadinar handled
6.95 MMT cargo as against 6.79 MMT in Q2FY12 whereas Hazira handled
2.99 MMT of cargo in Q3FY12 against 2.94 MMT in Q2FY12.
For 9MFY12, total volume of cargo handled stood at 30.87 MMT vs. 29.35
MMT in 9MFY11 with Vadinar handling 22.15 MMT in 9MFY12 against
22.71 MMT in 9MFY11 and the remaining volumes being contributed by
Hazira port. EPL’s capacity expansion, which has been aligned to anchor
customers growth plan, is slated to increase from 88 MMT at present to
158 MMT by Q4FY14 (earlier planned completion date was Q4FY13).
Paradip CQ3 berth with capacity of 16 MMT is expected to go on stream
by Q1FY13 (earlier planned completion date was Q4FY12), which would
boost cargo volumes, going ahead.
V a l u a t i o n
The company enjoys significant revenue visibility on account of long-term
take or pay agreements with its anchor clients. Most of the projects are
progressing well and completion of Paradip CQ3 berth would generate
higher volumes and catalyse growth in revenue and profitability. We
expect significant value creation as new capacities get commissioned and
cargo traffic gains traction over the next couple of years. We have valued
the company on DCF basis with a target price of | 107.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Click here for PDF LINK
S t a b l e p e r f o r m a n c e
Essar Ports (EPL) was demerged from Essar Shipping and Ports Ltd
(ESPLL) in June 2011. The existing company operates only the port
business. For Q3FY12, EPL reported a stable performance. Revenues
were flattish on QoQ basis and declined by 1% to | 272 crore while net
profit increased by 10% to | 45.0 crore. EBITDA declined by 5% to |
214.4 crore due to a 344 bps decrease in EBITDA margin to 78.9%.
Revenues and EBITDA have been subdued during Q3FY12 owing to shutdown by Essar Oil to expand its refinery to 18 million metric tonne per
annum (MMTPA).
During Q3FY12, volumes handled on a QoQ basis increased by only 2%
to 9.94 million metric tonne (MMT). Average realisation increased to |
237/tonne in FY12 from | 185/tonne in FY11. In Q3FY12, Vadinar handled
6.95 MMT cargo as against 6.79 MMT in Q2FY12 whereas Hazira handled
2.99 MMT of cargo in Q3FY12 against 2.94 MMT in Q2FY12.
For 9MFY12, total volume of cargo handled stood at 30.87 MMT vs. 29.35
MMT in 9MFY11 with Vadinar handling 22.15 MMT in 9MFY12 against
22.71 MMT in 9MFY11 and the remaining volumes being contributed by
Hazira port. EPL’s capacity expansion, which has been aligned to anchor
customers growth plan, is slated to increase from 88 MMT at present to
158 MMT by Q4FY14 (earlier planned completion date was Q4FY13).
Paradip CQ3 berth with capacity of 16 MMT is expected to go on stream
by Q1FY13 (earlier planned completion date was Q4FY12), which would
boost cargo volumes, going ahead.
V a l u a t i o n
The company enjoys significant revenue visibility on account of long-term
take or pay agreements with its anchor clients. Most of the projects are
progressing well and completion of Paradip CQ3 berth would generate
higher volumes and catalyse growth in revenue and profitability. We
expect significant value creation as new capacities get commissioned and
cargo traffic gains traction over the next couple of years. We have valued
the company on DCF basis with a target price of | 107.
No comments:
Post a Comment