Essar Ports - Record volumes, courtesy anchor clients - Axis Direct

Even as major ports reported a 2.6% volume decline, Essar Ports Ltd (EPL) reported record volumes (handled volume of 54.5 MT; up 26% YoY) in FY13, driven mainly by capacity expansion of its anchor clients, Essar Oil and Essar Steel. Group cargo accounted for 95% of total FY13 volumes.

Key ports of Vadinar and Hazira handled 10.54 MT and 3.84 MT of cargo in Q4FY13 respectively (up 16% each YoY), while ParadipI (commissioned in Q3) handled 0.44 MT. Third party cargo at Hazira contributed ~5% of FY13 volumes; management maintains its target to increase this to ~25% by FY15.

We continue to monitor the progress of ParadipII and Salaya terminals (59% completed) as well as pick up in third party volumes which remain key triggers for the stock.

Source : Equity Bulls

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