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Volumes witness a sequential decline: Volumes declined 6% sequentially to
15.5m tonnes led by a drop in volumes from Tata UMPP. However on account of
the Take or Pay contract with Tata UMPP, earnings for Q4 FY12 were largely inline
with expectations. The company reported revenues of RsRs6.4bn,
representing a 24% YoY growth and 7% QoQ decline. Margins were strong at
71.3% as the costs associated with Take or Pay revenues are marginal if the
cargo volumes do not take place. PAT for the quarter stood at Rs3.38bn, 1% YoY
growth and 9% QoQ growth.
On a positive note, container volumes continued its upward trajectory: clocking
volumes of 5.09m tonnes as against 4.7m tonnes in Q3 FY12.
Volumes and financials at Abbot Point disappoint: As against a Take or Pay
commitment of 18m tonnes, volumes at Abbot Point stood at 11.5m tonnes.
Further with the Take or Pay structured for a June year ending, the Take or Pay
fees do not get captured in FY12 numbers (Jun’11-Mar’12) leading to an
earnings disappointment. Revenues stood at Rs6.1bn, margins at 54% and a post
tax loss of Rs50mn. Going forward, with the entire 12 months getting captured
next year, we expect earnings & margins to improve.
The 3 C’s to contribute to incremental growth: From 64m tonnes in FY12, we
expect volumes to scale up to 80.3m tonnes in FY13. The major contributors to
growth are expected to be a) crude-on account of the new HMEL refinery
commencing operations, b) coal-on account of incremental phases commencing
operations at the Adani and Tata power plants and c) container-on account of
Mundra gradually increasing market share.
Valuations: Notwithstanding near term volume challenges, we remain positive
on the increasing long term volume trajectory at Mundra as well as the
subsidiary ports. We reiterate BUY with our SOTP based target price of Rs156.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Volumes witness a sequential decline: Volumes declined 6% sequentially to
15.5m tonnes led by a drop in volumes from Tata UMPP. However on account of
the Take or Pay contract with Tata UMPP, earnings for Q4 FY12 were largely inline
with expectations. The company reported revenues of RsRs6.4bn,
representing a 24% YoY growth and 7% QoQ decline. Margins were strong at
71.3% as the costs associated with Take or Pay revenues are marginal if the
cargo volumes do not take place. PAT for the quarter stood at Rs3.38bn, 1% YoY
growth and 9% QoQ growth.
On a positive note, container volumes continued its upward trajectory: clocking
volumes of 5.09m tonnes as against 4.7m tonnes in Q3 FY12.
Volumes and financials at Abbot Point disappoint: As against a Take or Pay
commitment of 18m tonnes, volumes at Abbot Point stood at 11.5m tonnes.
Further with the Take or Pay structured for a June year ending, the Take or Pay
fees do not get captured in FY12 numbers (Jun’11-Mar’12) leading to an
earnings disappointment. Revenues stood at Rs6.1bn, margins at 54% and a post
tax loss of Rs50mn. Going forward, with the entire 12 months getting captured
next year, we expect earnings & margins to improve.
The 3 C’s to contribute to incremental growth: From 64m tonnes in FY12, we
expect volumes to scale up to 80.3m tonnes in FY13. The major contributors to
growth are expected to be a) crude-on account of the new HMEL refinery
commencing operations, b) coal-on account of incremental phases commencing
operations at the Adani and Tata power plants and c) container-on account of
Mundra gradually increasing market share.
Valuations: Notwithstanding near term volume challenges, we remain positive
on the increasing long term volume trajectory at Mundra as well as the
subsidiary ports. We reiterate BUY with our SOTP based target price of Rs156.
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