Business Daily from THE HINDU group of publications
Thursday, May 21, 2009
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Business Daily from THE HINDU group of publications Thursday, May 21, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Markets
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Stocks Logistics - Financial Performance Corporate Results - Shipping/Ports Columns - Microscope Vidya Bala BL Research Bureau Growth in cargo volumes and a healthy cargo mix suggest that the marginal decline in Mundra Port and SEZ’s revenues for the quarter ended March 2009 (compared to a year-ago number) may not be much cause for concern. Mundra’s revenue for the March 2009 quarter declined by 13 per cent, even as net profits, aided by lower tax provisioning was up 66 per cent. Cargo handled during the latest ended quarter had expanded by 12 per cent to 9.5 million tonnes compared to March 2008. Interestingly, the cargo growth witnessed by the company in the March quarter is way above the average of one per cent recorded by all major ports in this period. The cargo mix also moved in favour of bulk even as containers witnessed some decline. Revenue nevertheless declined, as a result of lower receipt of lump sum income from sale of leases in the SEZ. A downturn in real estate and lower demand for fresh lease space appears to have led to subdued lease activity for Mundra during the quarter. Booking of SEZ space may remain muted for a couple of quarters; a revival in capex of companies may bring renewed interest in SEZ space by port-dependent industries. Annual performanceFor the year ended March 2009, Mundra sales rose 39 per cent to Rs 1,135 crore, while net profits shot up by 116 per cent to Rs 461 crore. Operating profit margins remained steady at 65 per cent. Cargo handled rose by an impressive 24 per cent for the full year at a time when overall port activity in the country remained muted (port traffic in India grew 2.1 per cent in FY-09) on the back of a global economic slowdown. Bulk cargo accounted for a good 54 per cent of the total cargo, mainly driven by coal. Coal traffic may see a significant increase in the next couple of years, when coal imports will start for the Adani and Tata Power plants in Gujarat. Mundra’s FY-09 growth in net profits may, however, not be sustainable as tax incentives (for SEZs) led to a visible reduction in provision from FY-09. The 45 per cent growth in profits before tax may be more indicative of growth to be expected in coming years. More Stories on : Stocks | Financial Performance | Shipping/Ports | Microscope
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