Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Mundra Port and SEZ
Misses estimates led by lower volumes and
other income
„ Operating profit up 25% YoY; Volumes increase 20% YoY
MSEZ reported Q1FY12 revenues of Rs5.3bn (+27% YoY, UBS-e Rs5.6bn),
operating profit of Rs3.6bn (+25% YoY, UBS-e Rs3.9bn) and pre-ex PAT of
Rs2.5bn (+17% YoY, UBS-e Rs2.9bn, consensus Rs2.7bn). EBITDA margins at
69% were in-line with our estimates. The miss was led by lower volumes of ~15mt
(+20% YoY), lower other income of Rs61m (due to utilization of funds for capex;
UBS-e Rs200m; Rs210m in Q1FY11) and lower-than-expected SEZ land leases.
„ Fresh lease of ~6acres in SEZ; Coal/container volumes increase 43%/23%
~6acres were leased to existing users for ~Rs60m. Q1 contract income was Rs65m.
Coal/container volumes grew strongly- coal was 5mt (from 3.5mt) and containers
4.1mt (from 3.4mt). Volumes across categories witnessed strong growth except
steel and POL which declined 28% and 13% YoY respectively.
„ Action: Maintain Buy; MSEZ maintains FY12 volume outlook of 75-80mt
FY12 volume growth is likely to be back-ended (UBS-e 76mt). Realization/margin
remains robust- Revenue/EBITDA per ton (adjusting for SEZ/contract income)
increased to Rs343/235 per ton in Q1FY12 from Rs318/223 in Q1FY11 and
Rs.342/229 in Q4FY11 (higher than our expectations; also aided by the Tata Power
take or pay contract). MSEZ is our preferred stock in the Adani group.
„ Valuation: SOTP-based PT of Rs180
Our valuation comprises 1) Port- Rs145, 2) SEZ- Rs19 and 3) Investments- Rs14.
Q 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.
Q 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
Misses estimates led by lower volumes and
other income
„ Operating profit up 25% YoY; Volumes increase 20% YoY
MSEZ reported Q1FY12 revenues of Rs5.3bn (+27% YoY, UBS-e Rs5.6bn),
operating profit of Rs3.6bn (+25% YoY, UBS-e Rs3.9bn) and pre-ex PAT of
Rs2.5bn (+17% YoY, UBS-e Rs2.9bn, consensus Rs2.7bn). EBITDA margins at
69% were in-line with our estimates. The miss was led by lower volumes of ~15mt
(+20% YoY), lower other income of Rs61m (due to utilization of funds for capex;
UBS-e Rs200m; Rs210m in Q1FY11) and lower-than-expected SEZ land leases.
„ Fresh lease of ~6acres in SEZ; Coal/container volumes increase 43%/23%
~6acres were leased to existing users for ~Rs60m. Q1 contract income was Rs65m.
Coal/container volumes grew strongly- coal was 5mt (from 3.5mt) and containers
4.1mt (from 3.4mt). Volumes across categories witnessed strong growth except
steel and POL which declined 28% and 13% YoY respectively.
„ Action: Maintain Buy; MSEZ maintains FY12 volume outlook of 75-80mt
FY12 volume growth is likely to be back-ended (UBS-e 76mt). Realization/margin
remains robust- Revenue/EBITDA per ton (adjusting for SEZ/contract income)
increased to Rs343/235 per ton in Q1FY12 from Rs318/223 in Q1FY11 and
Rs.342/229 in Q4FY11 (higher than our expectations; also aided by the Tata Power
take or pay contract). MSEZ is our preferred stock in the Adani group.
„ Valuation: SOTP-based PT of Rs180
Our valuation comprises 1) Port- Rs145, 2) SEZ- Rs19 and 3) Investments- Rs14.
Q 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.
Q 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.
No comments:
Post a Comment