Top takeaways from Q1FY17 : Dahej terminal operated at an all time peak of 130% capacity or 3.2mmt as 3rd party regas volumes rose 42% yoy and 89% qoq to 50.1tbtu aided by steady demand and Dabhol terminal going offline during monsoons. Long term/spot LNG volumes declined slightly due to seasonal factors and Dahej operating at maximum capacity. Our computed marketing margins on spot volumes jumped sharply from negative Rs 21/mmbtu in Q4FY16 to positive Rs 56/mmbtu in Q1 8 Kochi utilisation remained weak at 4.5% or 2.9tbtu with BPCL Kochi refinery being the only major customer though FACT fertiliser plant is upping off?take .Other income rose 43% yoy and 31% qoq to Rs 494mn.

Valuation: Phillip Capital raise FY17 EPS by 22% building in higher Dahej volume though FY18 remains unchanged, assuming 100% terminal utilisation and however change their long term DCF model by lowering WACC and net debt and building 1% terminal growth rate. Maintain Neutral with Rs 325 revised target price (Rs 275 earlier).