>MUNDRA PORT AND SEZ LTD. (IDFC SSKI)

HIGHLIGHTS

■ Cargo handled at the port grew by 12%yoy to 9.5mt, higher than our expectation of 9.4mt. Bulk cargo volumes increased by 25.5%yoy to 5.5mt, crude cargo volumes increased by 7.9%yoy to 1.8mt (reversing a declining trend of previous two quarters) and container cargo volumes declined by 8.5%yoy to 2.3mt. Cargo volumes continue to remain strong with April-09 volumes at 3.25mt.

■ Revenues fell by 13.4% yoy to Rs2.84bn, lower than our estimate of Rs3.1bn, due to Nil income from land sales. FY09 revenues increased by 38.7% yoy to Rs11.35bn.

■ EBITDA margins for the quarter stood at Rs58.2% (-460bps qoq, 1330bps yoy) impacted mainly by Nil SEZ sales during the quarter. Resultant Q4FY09 EBIDTA declined by 29.5%yoy to Rs1.7bn against our expectation of Rs1.9bn. FY09 EBIDTA grew by 37.7%yoy to Rs7.4bn with EBIDTA margins at 64.9% against 65.4% in FY08.

■ Q4FY09 depreciation charges were higher by 34.3%yoy at Rs391m with adverse impact of Rs11.8m due to increase in fixed assets due to capitalization of forex losses of Rs882m for the year. Net interest charges were lower by 21.8%yoy at Rs225m due to higher interest income of Rs255m (Rs158m in Q4FY08) from unutilized proceeds of IPO funds (Rs7.9bn in March-09).

■ Overall, net profit before extra-ordinary items and forex gain/loss grew by 24.5% yoy to Rs1.2bn for the quarter, in line with our estimate of Rs1.2bn. The growth in net profit appears steep in the backdrop of a 39% fall in PBT due to the impact of very high tax provision in Q4FY08.

■ FY09 consolidated total income increased by 42% to Rs12.4bn from Rs8.4bn in FY08. FY09 reported consolidated net profit increased by 105% to Rs4.3bn from reported net profit of Rs2.1bn in FY08.

■ The company declared dividend of 30% for FY09 (including 20% interim dividend) against 15% in FY08.

To see full report: MUNDRA PORT