Views on Gujarat Pipavav Port 3QFY2016 Results: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on Gujarat Pipavav Port 3QFY2016 Results:

GPPL reports disappointing results

"For the quarter ended Dec-2015, Gujarat Pipavav Port Ltd (GPPL) reported a 10.3% YoY decline in revenue to INR152cr, which is below our expectation of INR170cr. This is owing to 64% YoY decline in Dry Bulk volumes and 9.5% decline in Container business. Loss in the Dry Bulk business was compensated up to certain extent by 29% YoY increase in Liquid Cargo business and ramp-up in the Ro-Ro business. Higher contribution of Liquid Farms business and lower contribution of low margin Dry Bulk business in our view led to 659bps YoY EBITDA margin expansion to 57.1%. Despite EBITDA margin expansion, deferred tax of INR 28cr ate in to the PAT margins of the company, which declined from 52.7% a year ago to 35.0% in 3QFY2016. Reported PAT of INR 53cr, was lower than our estimate of INR 68cr. Currently, we have NEUTRAL rating on the stock."

Shares of GUJARAT PIPAVAV PORT LTD. was last trading in BSE at Rs.161.85 as compared to the previous close of Rs. 154.25. The total number of shares traded during the day was 138117 in over 3179 trades.

The stock hit an intraday high of Rs. 163.95 and intraday low of 152.25. The net turnover during the day was Rs. 21975454.

Source : Equity Bulls

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