Gujarat Pipavav Q1 concall highlights-
Operations suspended for 16 days due Cyclone Biparjoy
Volume for Q1-
Container load(TEUs)-1.99 lakh, up 7 pc
Dry Bulk(MT)-6.7 lakh, down 28 pc
Liquid(MT)-2.6 lakh, up 29 pc
RORO(units)-14k, up 118 pc(roll on/off ships-import/export of cars)
Financial outcomes –
Revenues- 215 vs 207 cr
EBITDA- 106 vs 112 cr (margins @ 49 vs 54 pc)
PAT- 68 vs 59 cr (due much higher other income)
Added container capacity by-32000 TEUs/yr (added 3 new services)
On RORO-have started handling VLGCs (very large gas containers) wef July
Not taken any tariff hike this yr, nor planing any in Q2
New LPG terminal to go live in May 25
On volumes growth-continued softness
Due power outages in Q1, costs of operations were higher by 7 cr in Q1 which are likely to reverse in Q2. also expect topline to be better in Q2
VLGCs should add to liquid volumes in Q2
Under normal circumstances, Volume growth of Ports should mirror the nominal GDP growth
WRT electronics, Pipavav is more into exports vs imports – bodes well for the company given the Govt’s push
RORO, Liquid cargo growth guidance for this yr at 50 pc, 25 pc YoY
Setting up of Dedicated Freight corridors does help the company wrt uptick in Railway business volumes
Capex for setting up new LPG terminal – 750 cr
Liquid capacity will go upto 5.2 from 3.2 million Tons post this capex, should add > 120 cr ( roughly ) to the topline
Expecting payments of >30 cr for damages caused by cyclone in 2021 form insurance company in this FY
Company recouping some Mkt share this FY vs previous 2 yrs
Disc : added a tracking position
Impressed by the high margin nature of business, liberal dividend payouts, company’s cash rich status and descent growth prospects
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