Downgrades

JSW Infrastructure (JSWINFRA) has consistently outperformed major ports in terms of volume, posting growth of ~15%/~9% in FY24/FY25, against major ports’ growth of ~8%/~5%.

JSWINFRA’s focus on brownfield capacity augmentation, infrastructure modernization, and strategic acquisitions aligns with India’s port sector growth drivers (government plans to quadruple port capacity to 10,000MTPA by FY47 from ~2,700MTPA currently).

Adani Ports & SEZ (APSEZ) reported a revenue growth of 23% YoY to INR85b in 4QFY25 (in-line). Cargo volumes grew 8% YoY to 118mmt. The growth was primarily led by containers. In FY25, APSEZ managed ~27% of the country’s total cargo and ~45% of container cargo.

Adani Ports & SEZ (APSEZ) reported a revenue growth of 15% YoY to INR79.6b in 3QFY25 (our estimate was INR75b). Cargo volumes grew 4% YoY to 113mmt.

During 3QFY25, JSW Infrastructure (JSWINFRA) completed the acquisition of a 70.37% share of Navkar Corporation (NAVKAR) through its subsidiary JSW Port Logistics (consolidated effective 11th Oct’24).

Adani Ports & SEZ (APSEZ) reported a revenue growth of 6% YoY to INR70.7b in 2QFY25 (in line). Cargo volumes grew 10% YoY to 111mmt. The growth was primarily driven by containers (+19% YoY).

Adani Ports & SEZ (APSEZ) reported a revenue growth of 19% YoY to
INR68.9b in 4QFY24 (in line). During the quarter, APSEZ recorded 26% YoY
growth in cargo volumes to reach 108.8 MMT.

Update Sep, 2022 Porting substantial value

Bulk expected to normalise in medium term promoter (APM Terminals Maersk Group). It lies at a strategic international maritime location, which connects India with the Far East, on the one side, and...

Subsequently, PAT de-grew 50% QoQ (down 32% YoY) to | 33 crore What should investors do? We expect commissioning of DFC (near term), the normalisation of global container trade (in the medium term) and extension of...

Cochin Shipyard (CSL) registered a substandard performance in Q1FY21 as production was halted till May 5. After this, production started on a reduced time scale for a significant period of the quarter affecting overall performance. Revenue for the quarter was at | 332.5 crore, down 55% YoY. Shipbuilding (SB) revenue fell 47.5% YoY to | 316.1 crore while shiprepair (SR) segment contracted 87.7% YoY to | 16.35 crore in the quarter. On a segmental profitability front, SB reported EBIT of | 62.5 crore whereas SR clocked an EBIT (loss) of | 8.9 crore. SB, SR segments contributed 95.1%,...

Cochin Shipyard Ltd (CSL) reported a healthy set of numbers in Q4 with topline growing by 3.6% yoy, though on a qoq basis they fell by 9%. The material costs saw a contraction in Q4 as they stood at 48.3%. Subcontracting costs dropped by 18.4% yoy in the quarter. EBITDA margins saw a solid surge at 20% v/s 14% yoy as the company reported strong ship repair margins at 27% on a strong execution and delivery in this business. Other income fell to 450 mn over 643 mn yoy. PBT grew by 14.8% yoy to 1.8 bn, while reporting strong margins at 22.6%. PAT came at 1.4 bn , which has grown by 42.5% yoy, while margins came at 17%. The company delivered a 1000 MT Cargo vessel for A&N; administration. The company also delivered 8 RoRo vessels (2...

As per internal estimates of APM terminals, global Exim trade is expected to de-grow 20% in FY21E. However, the management expects volumes at GPPL to be minimally disrupted during the same year. Port imports (60-65% of cargo) are Far-East oriented, which is showing positive signs of recovery while the ports on the west (US, Europe) continue to lag behind. On the exports front, the management is seeing positive trends and expects good agricultural exports to the Middle East in Q2FY21. In FY20, 45% of GPPL volumes were transported via its parent entity APM-Maersk. In April, May,...

Cochin Shipyard Ltd (CSL) is the largest public sector shipyard in India deriving major revenue from Navy. The main sources of revenue are ship building for navy, coast guard, commercial and ship repair. Given CSL's strong balance sheet, dividend of 5.3%, improvement in order book visibility and capacity expansion, we remain constructive on the stock. Order backlog is at ~Rs15,253cr, including recently booked ordersAnti submarine warfare vessel (ASW Corvettes-Rs6,300), IAC Phase - III (Rs3,235), has enhanced earnings visibility in the near future....

Solid shipbuilding performance, healthy b/s, capacity addition During Q1FY20, revenue booked for indigenous air craft carrier under cost plus' was at | 356 crore while fixed price' contract was | 114 crore for an aggregate of | 470 crore. CSL continues to have a healthy b/s with cash balance of ~| 2400 crore as on Q1FY20. Of the planned capex of ~| 3000 crore (| 2769 crore for the new larger size dry dock and repair facility with | 170 crore for Hooghly Cochin Shipyard. In addition, CSL plans to spend on developing docks at Mumbai, Andaman & Nicobar and Kolkata), CSL has...