Gujarat Pipavav Port Ltd. share price target

Gujarat Pipavav Port Limited is the developer and operator of APM Terminals Pipavav, India's first private sector port, which has multi-cargo and multi-user operations. Unlike most ports in the western region where coal is an important shipment, GPPL derives only 30% of its volumes from coal. Nearly 60 per cent of its business is from container handling and 10% is from liquid terminals.

For 3QFY2016, Gujarat Pipavav Port (GPPL) reported 10.3% yoy decline in revenues to Rs152cr. On sequential basis revenue was up 8.3%. Reported top-line number is below our expectation of Rs170cr. Top-line de-growth on a yoy basis is on account of (1) 9.2% decrease in Container business volumes (to 178,000TEUs), and (2) 63.3% decrease in Dry Bulk business (to 443,000MT). GPPL reported an EBITDA of Rs87cr, which is ahead of our expectation of Rs81cr. The reported EBITDA margin of the company came in at 57.1%, up from 48.2% in the sequential previous quarter and from 50.5% in the corresponding quarter a year ago. EBITDA during the quarter benefitted from shift in business mix and Rs1cr of reversal with regards the dredging cost. GPPL reported an Adj. PAT of Rs53cr, down 40.3% yoy, and 12.6% qoq. Adj. PAT margin for the quarter came in at 35.0% vs 52.7% in the corresponding quarter a year ago. Adj. PAT number, on yoy basis, was impacted by (1) Rs28cr of tax expense (vs tax exemption in 3QFY2015), (2) 53.4% increase in depreciation expenses to Rs25cr, and (3) 1.6% decrease in other income to Rs20cr. The sharp increase in depreciation expense is owing to the change...

Gujarat Pipavav Port's (GPPL) revenues grew nearly 20% YoY and 2% QoQ to Rs 188 crs, EBITDA for Q5FY15 grew strongly with 23% growth YoY (12% QoQ) to Rs 112.6 crs. On the EBITDA margin front, margins expanded 130 bps YoY and 543 bps QoQ to 59.9% on account of lower bulk revenues, which resulted in lower equipment hiring cost...

Gujarat Pipavav Ports (GPPV) 3QFY15 APAT of Rs 893mn was in line with our est. of Rs 900m. Container volumes remained strong at 0.2mn TEUs (flat YoY and QoQ) with bulk volumes rising 21% QoQ to 1.21MT owing to higher fertiliser volumes.

Gujarat Pipavav Port (GPPL) is the developer and operator of APM Terminals Pipavav, India's first private sector port, which has multicargo and multi-user operations. GPPL has the exclusive right to develop and operate APM Terminals Pipavav and related facilities until September 2028 pursuant to the Concession Agreement with GMB and the GoG. GPPL is promoted by APM Terminals, one of the largest container terminal operators in the world with a global network of 50 terminals in 34 countries and five continents. APM Terminals is principally engaged in providing port handling and marine services for: (i) container cargo, (ii) bulk cargo, and (iii) LPG cargo apart from operating a CFS and also generate revenue from land-related...