Mundra Port & SEZ (MPSEZ) – Marching ahead

Q3FY10 results review - ICICI Securities

Q3FY10 results for MPSEZ were below expectations, with revenues rising 3.2% YoY to Rs3.1bn (I-Sec: Rs3.5bn) and PAT increasing 62% YoY to Rs1.6bn (I-Sec: Rs1.8bn). Overall traffic declined 3% QoQ to 9.83mnte from 10.11mnte in Q2FY10, led by 42% QoQ drop in crude oil traffic. Crude offtake at Mundra declined owing to fire at Indian Oil Corporation's (IOC) Jaipur depot. However, bulk commodity volumes rose 13% QoQ. Among recent developments: i) MPSEZ is developing port facilities at Mormagoa & Hazira, ii) at the Mundra port, Alstom-Bharat Forge JV is setting up a 120-acre power equipment manufacturing facility and iii) Gujarat State Petronet (GSPL) is planning to set up an LNG terminal. The company is also pursuing growth opportunities in Eastern ports to create a pan-India port presence. We expect strong traffic CAGR of ~23% at the Mundra port over FY09-14E, driven by 3Cs – Coal (36% CAGR), container (24% CAGR) and crude (20% CAGR). Given the MPSEZ's superior growth & scale of operations, we maintain BUY with Rs632 target price.

Source : Equity Bulls

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