We note that profitability was adversely impacted by higher lease cost at the Kandla port. Nevertheless, both the Kandla and Haldia terminals will be fully operational (at full capacity) post commissioning from 3QFY19, making vital contribution (along with Mangalore terminal) to profitability. Logistics volume growth is likely to remain strong, led by ramp-up of the Haldia and Pipavav terminals. Record-high production volumes were achieved in LPG Cylinders & Industrial LPG segment, as north-east India is witnessing strong demand for LPG. AGIS has won two tenders from IOC for sourcing of 1.5MT of LPG for 2019, and tenders from HPCL and BPCL are awaited. Pipavav terminal is likely to continue operating at 25% capacity, while Haldia terminal is expected to witness higher volumes and profitability. We believe AGIS is a key beneficiary of Indias rising LPG consumption. With ramp-up of Haldia and Pipavav LPG terminals, we expect 49% logistics volume CAGR over FY18-20.