Essar Ports Ltd. · Essar Ports recorded highest quarterly operating revenues of Rs 431.6 crores...
Transcript of Essar Ports Ltd. · Essar Ports recorded highest quarterly operating revenues of Rs 431.6 crores...
Industry Update
� Budget 2014-15
� 16 new port projects and Rs 37,880 crores investment for road
infrastructure development will provide much required boost for port
infrastructure sector and its connectivity .
� Long-term financing for infrastructure projects will receive a boost due to
flexible structuring and minimum regulatory pre-emptions like CRR, SLR
and Priority Sector Lending on long term funds raised for infrastructure and Priority Sector Lending on long term funds raised for infrastructure
lending.
� Creation of Infrastructure Investment Trusts as modified REIT structures by
providing tax efficient pass through status can become an efficient tool for
raising equity and long term financing for infrastructure and PPP projects.
� Overall, the budget helps in boosting the investor confidence and paves
road for availability of funds for investment in infrastructure
� Infrastructure sector will now look forward to reduction in interest rates and
hopefully reduction in minimum alternate tax rates in the next budget
� Total growth in traffic at major ports for the quarter
stood at 4.3% which was majorly contributed by
growth in other cargo
� Iron ore traffic saw growth of 4% during the quarter
� Overall growth in Coal, POL segments at Major ports
was flat which may be majorly because of increasing
Q1 FY15 Cargo Trends for Major Ports
infrastructure development will provide much required boost for port
receive a boost due to
emptions like CRR, SLR
infrastructure
2
traffic share of non major ports
� Q-o-Q Other cargo grew by grew by 14.9%
Cargo Q1FY14 Q1FY15 %Change
Coal 27.7 MMT 27.7 MMT 0.2%
POL 46.8 MMT 46.8 MMT -0.0%
Iron Ore 5.0 MMT 5.2 MMT 4.3%
Containers 1.87 mn
TEU
1.94mn
TEU
3.9%
Other Cargo 29.1 MMT 33.4 MMT 14.9%
Total Major
Ports
137.2 MMT 143.1 MMT 4.3%
infrastructure
of Infrastructure Investment Trusts as modified REIT structures by
providing tax efficient pass through status can become an efficient tool for
raising equity and long term financing for infrastructure and PPP projects.
, the budget helps in boosting the investor confidence and paves
forward to reduction in interest rates and
budget
Salaya
Vadinar
� 20 MTPA Dry Bulk Terminal at Salaya
Operational
Under Construction
� 58 MTPA Liquid Terminal at Vadinar
� 30 MTPA Dry Bulk / General Cargo Terminal
at Hazira
� 16 MTPA Dry Bulk Terminal at Paradip
Current capacity of 104 MMTPA
Essar Ports: Overview
Hazira
� 20 MTPA Dry Bulk Terminal at Salaya
� 32 MTPA Iron Ore Berths at Vizag
� 20 MTPA General Cargo Terminal at Hazira
� 18 MTPA Coal Terminal at Paradip
� Liquid Storage Terminal (expansion) at
Vadinar
Under Development
� 3 stand-alone ports on the West Coast and 3 terminals on the East Coast of India
� Presence in strategic locations of east and west coast, with bulk of the investments in the key state of Gujarat
� High operating margins at operating ports
� Further scalability possible at most locations
Paradip I (Dry Bulk)
to be scaled up to 194 MMTPA
INDIA
BAY of
BENGAL
INDIAN
OCEAN
Paradip II (Coal)
Hinterland for Essar Ports
Vizag (Iron Ore)
3
alone ports on the West Coast and 3 terminals on the East Coast of India
Presence in strategic locations of east and west coast, with bulk of the investments in the key state of Gujarat
Performance Summary
� Operations
� Cargo handled for the quarter stands at 13.75 million tonnes (MMT) which is up from 13.03 MMT handled during Q4 FY14
� Vadinar Oil Terminal has recorded traffic of 10.44 MMT during Q1
� Hazira terminal has shown an upward trend in volumes handled during
2.63 MMT handled in Q4 FY14
� Paradip terminal handled 0.01 MMT of cargo during Q1 FY15. Slurry pipeline operations have commenced during June and cargo i
expected to grow during Q2 FY15.
� Expansions
� Salaya Final Forest Clearance received and construction has commenced. Expected COD June 2015
Hazira expansion environment clearance received for 4.8 km of berth length.� Hazira expansion environment clearance received for 4.8 km of berth length.
� 1100m expansion project construction to start post receipt of GMB approval
� Vizag Iron ore terminal existing operations are expected to be taken over during Q2 FY15
� Up gradation of outer harbour is planned simultaneously along with operations
� Financial Results
� Essar Ports recorded highest quarterly operating revenues of Rs 431.6 crores
� Revenue for the quarter increased by 4% to Rs. 431.6 crore from Rs. 415
Rs. 410.5 crore during corresponding quarter of previous year (Q1FY14)
� EBITDA for the quarter increased by 5% to Rs. 346.8 crore from Rs. 329
Rs. 334.8 crore during corresponding quarter of previous year (Q1FY14)
� Net Profit for the quarter has increased by 1% to Rs. 92.2 crore from Rs
crore from Rs. 101.4 crore during corresponding quarter of previous year
Cargo handled for the quarter stands at 13.75 million tonnes (MMT) which is up from 13.03 MMT handled during Q4 FY14
during Q1 FY15 as against 10.27 MMT in Q4 FY14 and 9.98 MMT in Q1 FY14
has shown an upward trend in volumes handled during Q1 FY15. Cargo handled was 3.30 MMT during Q1 FY15 as against
Paradip terminal handled 0.01 MMT of cargo during Q1 FY15. Slurry pipeline operations have commenced during June and cargo is
Salaya Final Forest Clearance received and construction has commenced. Expected COD June 2015
Hazira expansion environment clearance received for 4.8 km of berth length.
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Hazira expansion environment clearance received for 4.8 km of berth length.
1100m expansion project construction to start post receipt of GMB approval
Vizag Iron ore terminal existing operations are expected to be taken over during Q2 FY15
Up gradation of outer harbour is planned simultaneously along with operations
crores (excluding export obligation revenues booked in previous quarters)
415.5 crore during previous quarter (Q4 FY14) and increased by 5% from
329.6 crore during the previous quarter (Q4 FY14) and increased by 4% from
Rs. 90.8 crore during the previous quarter (Q4 FY14) and reduced by 9%
year (Q1FY14)
Key Highlights
9.98 10.27 10.44
3.61 2.633.30
0.500.12
0.01
Cargo handled (MMT)
14.0813.03
13.75
Note: Company has earned trade revenues and incurred expenses of
export obligations under EPCG.
Rs Cr Q1 FY15
Revenue (Excluding trade revenues) 431.6
Trade revenues/expenses for fulfilling export obligations 0.0
Total Revenues 431.6
EBITDA 346.8
PAT 92.2
EPS (Rs per Share) 2.15
Q1 FY14 Q4 FY14 Q1 FY15Vadinar Hazira Paradip Dry Bulk
� 13.75 million tonnes of cargo handled during Q1 FY15 as
against 14.08 million tonnes of cargo handled during Q1 FY14
� Cargo handled during Q1 FY15 was up 6% as against 13.03
MMT cargo during Q4 FY14
� Paradip dry bulk terminal and Vizag terminal are expected to
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(Figures in Rs Cr)
Note: Company has earned trade revenues and incurred expenses of Rs 577.5 cr each (Profit neutral) during FY14 on account of fulfilling
add to volume and profit growth during Q2 FY15
Q1 FY15 Q4 FY14 Growth % Q1 FY14 Growth %
431.6 415.5 4% 410.5 5%
0.0 275.5 0.0
431.6 691.1 410.5
346.8 329.6 5% 334.8 4%
92.2 90.8 1% 101.4 -9%
2.15 2.12 1% 2.37 -9%
Asset-wise Highlights
Vadinar
� Vadinar terminal handled 10.44 MMT of cargo during Q1 FY15
as against 9.98 MMT during Q1 FY14
� Consistent track record of operations
� Terminal has handled 96 ships during the quarter as against 99
ships during Q1 FY14
Hazira
� The total cargo handled during Q1 FY15 was 3.30 MMT as
against 3.61 MMT during Q1 FY14
� Terminal has handled 67 ships during the quarter as against 71
ships during Q1 FY14
� Hazira terminal has shown an upward trend in volumes handled
backed by increased production by Essar Steel
� Final environment clearance received for expansion project for a
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� Final environment clearance received for expansion project for a
total of 4.8 km of the berth length
� 1100m expansion project construction to start post receipt of
GMB approval
Pradip Dry Bulk
� Handled 0.01 MMT cargo during the quarter as against 0.50
MMT during Q1 FY14
� Construction of Essar Steel slurry pipeline completed and project
has now been commissioned
� Commencement of commercial operations towards end of
quarter has resulted in 0.01 MMT of traffic by the end of June’14.
Asset-wise Highlights
� High input costs and rail capacity constraint resulted in nil cargo
till the time slurry pipeline was commissioned
Salaya
� Expected COD: June 2015
� Bund Construction is in progress
� Jetty and stockyard construction complete
� Bund and Conveyor construction to be completed in an year’s
time
� Stockyard is operational with three stacker cum reclaimers
1,710 MW of imported coal based power generating capacity
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� 1,710 MW of imported coal based power generating capacity
already operational
Vizag – Iron Ore: An existing project, with no
gestation period for commencement
Outer harbour
(Phase –I)
Inner harbour
(Phase – II)
Total
Berth dimensions 295 mtr. 280 mtr.
Capacity (MMTPA) 24.0 8.0 32.0
Draft 21 m (proposed)
16.5 m (current)
14 m (proposed)
12 m (current)
Vessels Super capesize
(upto 200,000 DWT)
Panamax
Stackyard area (ha) 48.3 7.6 55.97
Project Cost Rs 1153 Crore
Project profile
Project Cost Rs 1153 Crore
Historical Iron Ore Traffic at Vizag
� Q1 FY15 ironore cargo handled at Vizag port stood at 3.03 Million tonnes
� Project takeover expected to happen during Q2 FY15
� Project will significantly enhance third party mix of the Company and gives strategic presence on the east coast after Paradi
� Significant volumes are for coastal movement and exports picking up will further boost volumes
18.119.1
16.2
12.3 13.0
FY2010 FY2011 FY2012 FY2013 FY2014
Iron Ore: An existing project, with no
gestation period for commencement
Total
32.0
55.97
8
tonnes
Project will significantly enhance third party mix of the Company and gives strategic presence on the east coast after Paradip.
Significant volumes are for coastal movement and exports picking up will further boost volumes
Cargo split
Q1 FY14
Crude (SPM), 4.00
Liquid
Dry Bulk, 3.74
Breakbulk/Project Cargo, 0.37
Liquid Product (Jetty), 3.14
Liquid Product (Road/Rail), 1.2
4
Liquid Intermediate, 1.
60
Q1 FY14 Total Traffic 14.08 MMT
Liquid Product (Road/Rail), 1.17
Q1 FY15
Crude (SPM), 4.48Liquid
Intermediate, 1.60
Dry Bulk, 2.84
Breakbulk/Project Cargo, 0.47
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Liquid Product (Jetty), 3.19
Liquid Product (Road/Rail), 1.17
0
Q1 FY15 Total Traffic 13.75 MMT
Year on year performance
0.0
150.0
300.0
450.0
600.0
330.3
410.5431.6
Revenue (Rs Crore)
0.0
Q1 FY13 Q1 FY14 Q1 FY15
0.0
40.0
80.0
120.0
Q1 FY13 Q1 FY14 Q1 FY15
68.6
101.492.2
PAT (Rs Crore)
0.0
100.0
200.0
300.0
400.0
500.0
271.3
334.8346.8
EBITDA (Rs Crore)
10
0.0
Q1 FY13 Q1 FY14 Q1 FY15
0.00
1.00
2.00
3.00
Q1 FY13 Q1 FY14 Q1 FY15
1.65
2.372.15
EPS (Rs per Share)
Financial Performance
(Figures in Rs Crore)
Q1 FY15 Q4 FY14 Q1 FY14
Total Income 431.6 415.5 410.5
Trade revenues for fulfilling export
obligations 0.0 275.5 0.0
Total Expenses 84.8 86.0 75.7
Trade expenses for fulfilling export
obligations 0.0 275.5 0.0
EBITDA 346.8 329.6 334.8
EBITDA Margin 80% 79% 82%
Interest and Finance Expenses 161.4 151.6 146.8
Profit Before Depreciation and Tax 185.4 178.0 188.0
Depreciation 74.8 69.8 68.5
Profit Before Tax 110.6 108.1 119.5
Tax 17.8 16.4 17.1
Adjustment for Share of Minority Interest -0.7 -0.9 -1.0
Profit After Tax 92.2 90.8 101.4
Basic EPS (Rs) 2.15 2.12 2.37
Note: Company has earned trade revenues and incurred expenses of Rs 577.5
during FY14 on account of fulfilling export obligations under EPCG.
� Q-o-Q revenue saw a growth of 5% to Rs
431.6 cr
� Q-o-Q EBITDA saw a growth of 4% to Rs.
346.8 cr over Q1 FY14
� PAT for Q1 FY15 reduced by 9% to Rs
92.2 cr as against Rs 101.4 cr for Q1 FY14
� Net profit reduction due to higher interest
Highlights
Q1 FY14 FY14
410.5 1637.4
0.0 577.5
75.7 310.3
0.0 577.5
334.8 1327.1
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� Net profit reduction due to higher interest
and depreciation resulting from
capitalization of assets
� EPS for Q1 FY15 was Rs 2.15 per share
as against EPS of Rs 2.37 for Q1 FY14
Debt as on 30st June 2014 (Rs Cr)
Operating 4,678
Project 1,185
TOTAL 5,863
82% 81%
146.8 599.1
188.0 728.0
68.5 277.2
119.5 450.8
17.1 63.4
1.0 -3.7
101.4 383.7
2.37 8.97
577.5 cr each (Profit neutral)
Vadinar Photographs
SBM – Draft 32 m
Jetty Area
Product Jetties – Draft 20m, 16m
Jetty With Loading arms in operation
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Vadinar Photographs.. contd
Crude Oil Tankage farm
Rail Gantry
Product and Intermediate Tankage Farm
Road Gantry
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Legal Disclaimer
“This presentation is for information purposes only and doesrespect to the purchase or sale of any security of Essar Portsand no part of it shall form the basis of or be relied upon in connection
This presentation is not a complete description of the Companyphrases that are forward looking statements. All forward-assumptions that could cause actual results to differ materiallystatement. Any opinion, estimate or projection herein constitutescan be no assurance that future results or events will be consistentinformation in this presentation is subject to change without notice,condensed and it may not contain all material information concerningdo not intend to, update or otherwise revise any statementspresentation or to reflect the occurrence of underlying events,
All information contained in this presentation has been preparedhas been independently verified by anyone else. No representationnor is any responsibility or liability of any kind accepted withinformation, projection, representation or warranty (expressedCompany nor anyone else accepts any liability whatsoever forpresentation or its contents or otherwise arising inused, reproduced, copied, distributed, shared or disseminated
The distribution of this document in certain jurisdictions maypresentation comes should inform them about, and observe, any
does not constitute an offer, solicitation or advertisement withPorts Limited (the “Company” or “EPL” or “Essar Ports Limited”)connection with any contract or commitment whatsoever.
Company. Certain statements in this presentation contain words orforward-looking statements are subject to risks, uncertainties andmaterially from those contemplated by the relevant forward lookingconstitutes a judgment as of the date of this presentation, and there
consistent with any such opinion, estimate or projection. Thenotice, its accuracy is not guaranteed, it may be incomplete or
concerning the Company. We do not have any obligation to, andstatements reflecting circumstances arising after the date of thisevents, even if the underlying assumptions do not come to fruition.
prepared solely by the Company. No information contained hereinrepresentation or warranty (express or implied) of any nature is made
with respect to the truthfulness, completeness or accuracy of any(expressed or implied) or omissions in this presentation. Neither the
for any loss, howsoever, arising from any use or reliance on thisconnection therewith. This presentation may not be
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may be restricted by law and persons into whose possession thisany such restrictions.”
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