Monthly Economic Monitoring of Ukraine No 231, April 2024
Gujarat Pipava Port IPO
1. Ports
IPO Note | Ports
August 23, 2010
Gujarat Pipavav Port SUBSCRIBE
Issue Open: August 23, 2010
Land Ahoy - Turnaround in sight Issue Close: August 26, 2010
Gujarat Pipavav Port Limited (GPPL) is a private port in proximity to the
Issue Details
north-western region which handles around 65% of the container cargo in India.
Face Value: Rs10
We believe that GPPL is well-positioned to attract incremental container traffic given
high capacity utilisation and port congestion at JNPT. We recommend Subscribe to Present Eq. Paid up Capital: Rs314.9cr
long-term
the IPO at the lower price band with a long-term perspective. Offer Size: 11.59cr-13.08cr Shares* (Fresh
Issue 10.42cr-11.90cr shares & Offer for
No regulatory hurdles to set tariffs: GPPL is not a major port and hence is not
covered under the purview of the Tariff Authority for Major Ports (TAMP). Thus, sale 1.17cr shares)
GPPL is free to set its own tariffs making it nimble to respond to changes in market Post Eq. Paid up Capital*:Rs419.0cr-433.9cr
dynamics. In order to attract volumes and combat with global recession, GPPL had Issue size (amount): Rs500cr
reduced tariff in CY2009. However, management has indicated to hike its container
Price Band: Rs42-48
tariff by ~25% from CY2010 following improvement in the economy.
Promoters holding Pre-Issue: 57.9%
Margins to improve with increase in utilisation rates: During CY2009 company
Promoters holding Post-Issue: 42.0%-43.5%
experienced OPM expansion of 13% due to better capacity utilization. Going ahead,
Note:*at Lower and Upper price band
we estimate 25% margin expansion to 45%,(Mundra clocks OPM of 70% and GPPL respectively
management has guided OPM at ~60-70%) over next three years with improvng
capacity utilisation. Further, we expect penalty charges to PRCL to fade away with Book Building
growing traffic and reduction in interest cost which will further enhance margins. QIBs At least 60%
Expensive valuations but underpinned with substantial growth potential: At the Non-Institutional At least 10%
lower band of Rs42, GPPL trades at a premium to its global peers at 2.5x CY2011E
Retail At most 30%
P/BV v/s 2.0x respectively. We believe that GPPL comes off a low base compared to
some established ports and to that extent the growth should command a premium.
On the domestic front, the company is trading at a substantial discount to the
Post Issue Shareholding Pattern
Mundra port, which trades at 5.9x FY2012E P/BV. We believe that GPPL's discount
to Mundra port is justified given the latter's larger scale of operations, revenue Promoters Group 42.0%
from its SEZ and higher profitability growth. However, given GPPL's high growth MF/Banks/Indian
potential we believe that the 57% discount is unwarranted. Hence, we recommend FIs/FIIs/Public & Others 58.0%
Subscribe to the IPO at the lower price band with a long-term perspective.
Key Financials
Y/E Dec. (Rs cr) CY2008 CY2009 CY2010E CY2011E CY2012E
Net Sales 167.3 219.1 264.9 360.3 447.7
% chg 10.4 31.0 20.9 36.0 24.3
Profit
Net Profit (67.6) (117.7) (78.4) 7.6 55.1
% chg - - - - 621.7
EBITDA Margin (%) 7.6 20.1 31.0 40.0 45.0
FDEPS (Rs) (1.6) (2.7) (1.8) 0.2 1.3
P/E (x) - - - 238.8 33.1
Param Desai
P/BV (x) 3.8 4.3 2.5 2.5 2.3 +91 22 4040 3800 Ext: 310
RoE (%) - - - 1.0 7.1 Email: paramv.desai@angeltrade.com
RoCE (%) - - - 5.7 9.0
Mihir Salot
EV/EBITDA (x) 159.0 51.5 29.3 17.1 12.3 +91 22 4040 3800 Ext: 307
Source: Company, Angel Research; Note: * at the lower end of the price band mihirr.salot@angeltrade.com
Please refer to important disclosures at the end of this report
2. Gujarat Pipavav Port | IPO Note
Company Background
GPPL, incorporated in 1992, is the exclusive developer and operator of APM Terminals
Pipavav - India's first private sector port. The company entered into a concession
agreement with GMB in September 1998, to develop, construct, operate and maintain
the port along with the foreshore land and waterfront for 30 years. It is promoted by
APM Terminals (holding 57.9% pre-issue), one of the largest container terminal
operators in the world with a global network of 49 terminals in 32 countries. The port
is primarily engaged in multi-cargo and multi-user operations for container, bulk and
LPG cargo. Moreover, it undertakes CFS operations, infrastructure and land related
activities in the vicinity of the port. Currently, the container and bulk cargo handling
capacity at the port stands at 0.6mn TEU and 5mn tonnes pa, respectively.
Exhibit 1: Time line of Events
2.6HA of paved
container yards
developed
2 PPQC
commissioned
Environment
Mainline container friendly coal yard
vessel services commissioned
operational
Vessel acceptance
SKIL exits by selling stake to draft incresed to
APM Terminals Mauritius Ltd, 12.5mtrs (Phase I)
IDFC and IDFC Infra Fund
3 PPQC
commissioned
Rail connectivity from
Surendranagar to
Pipavav started
8 RTG cranes 10 eco-friendly
commissioned RTG cranes
commissioned
APMM Group
acquires 13.5% 1st Port to receive
Double Stack
Container Train Vessel acceptance
from ICD Kanakpura draft - 14.0 mtrs
Concession Agreement (Jaipur) to Pipavav (Phase II)
between PRCL and IR 3 PQC
commissioned
Constructed
jetty no. 4 and
modified bulk
liquid jetty
Concession Agreement
with GMB and GoG
Commercial operations Rly siding no. 5, 6
commenced and 7 commissioned
PRCL incorporated
as a JV with
Indian Railways
1997 1999 2001 2003 2005 2007 2009
Source: Company RHP Angel Research
,
Strategic location, robust infrastructure and strong connectivity
APM Terminals Pipavav is strategically located at the mouth of the Gulf of Khambhat
(formerly Gulf of Cambay) on the main maritime trade routes in the Arabian Sea. It
offers shorter transit time vis-avis JNPT port for cargo to/from the industrialised
hinterland in north India (generating ~65% of the total container throughput). We
believe that given the high capacity utilisation and port congestion at JNPT, there is
tremendous scope for diversion of volumes to the ports on the north-west coast providing
significant cost and logistic advantages. The port offers favourable oceanographic
conditions of 4,550 channel length and vessel acceptance draught of 14.5 meters
(vis-à-vis 12.5 meters at JNPT and 12.5-17.5 meters at Mundra), which enable day
and night navigation of ships through the year. There are four berths for handling
August 23, 2010 2
3. Gujarat Pipavav Port | IPO Note
bulk and containerised cargo and a dedicated LPG berth with strong ancillary
infrastructure in place. The port boasts of robust infrastructure by way of two CFS's,
eight panamax quay cranes (PQC), 18 rubber-tyre gantry (RTG) cranes, five re-stackers,
paved rail sidings and port users' buildings.
The company owns 38.8% in a joint venture (JV) with Indian Railways (IR), viz. Pipavav
Railways Corporation (PRCL), which maintains the 269km broad gauge railway link
connecting the port to the commercial hub of Surendranagar in Gujarat. India's first
double stack container rake service, with a capacity of 180 TEUs, was provided by
PRCL between the port and Kanakpura ICD (Jaipur) in March 2006. Presently, five to
six trains (maximum capacity of 22 trains) per day are being operated in each direction.
The port is also connected with NH-8E by a four-lane road link of 10km thereby
servicing vital commercial hubs between Mumbai and Delhi.
Revenues driven by bulk and container cargo
GPPL's revenue is evenly contributed by container and dry bulk cargo. The company
derives its bulk cargo business mainly from the coal and fertilisers trade. While fertiliser
demand is usually robust between June-September owing to the sowing season, coal
imports are relatively less cyclical and sustain on demand from the power plants and
cement companies in the region. Although the container volumes have consistently
improved for GPPL (CAGR of 33.5% during CY2006-09), realisations have dropped
due to economic slowdown and trade discounts offered to the liners for calling on the
port. The company also provides marine services to Ultratech, which includes pilotage
services to vessels as well as port dues from these vessels.
Exhibit 2: Revenue break-up
120.0
100.0
80.0 35.8
44.1 42.0 28
45
60.0
40.0
59.3 53.3 60
20.0 49.5 47
0.0
CY2006 CY2007 CY2008 CY09 1QCY2010
Container Cargo Dry Bulk Cargo LPG Cargo
Land-related Revenue Marine Services to Ultratech Others
Source: Company RHP Angel Research
,
August 23, 2010 3
4. Gujarat Pipavav Port | IPO Note
IPO details
GPPL is coming out with its IPO for Rs500cr through fresh issue of 10.4-11.9cr shares
in the price band of Rs42-48 per share. Around Rs10cr has been earmarked for
employee applications. The issue proceeds would be utilised for prepayment of loans,
capital expenditure, purchase of capital equipment and general corporate purpose.
Besides, The Infrastructure Fund of India, LLC and The India Infrastructure Fund have
offered to partially sell their stakes to the tune of 7,601,248 and 4,106,121 shares
respectively, through the IPO.
Exhibit 3: Shareholding Pattern
Shareholders Pre-Issue
Pre
re-Issue Post Issue
Post
no. of % of no. of % of
Equity shares Eq. capital Equity shares Eq. capital
APM Terminals Mauritius Limited 182,152,360 57.9 182,152,360 42.0
Total holding of Promoters (A)
Promoters 182,152,360 57.9 182,152,360 42.0
IDBI Trusteeship Services Limited A/C IDFC Infrastructure Fund
- India Development Fund 32,046,535 10.2 32,046,535 7.4
IDBI Bank Limited 27,958,615 8.9 27,958,615 6.4
New York Life International India Fund (Mauritius) LLC 14,748,160 4.7 14,748,160 3.4
IDFC Trustee Company Ltd A/C IDFC Infrastructure Fund 2
A/C IDFC Private Equity Fund II 12,752,302 4.1 12,752,302 2.9
IL and FS Trust Co Ltd A/C IL&FS Private Equity Trust 10,484,480 3.3 10,484,480 2.4
The Infrastructure Fund of India LLC* 15,202,497 4.8 7,601,249 1.8
The India Infrastructure Fund LLC* 8,212,843 2.6 4,106,722 0.9
Other Institutional investors 43,611,614 1.7 5,626,672 1.3
Total holding of the Institutional Investors (B) 127032104 40.3 115,324,735 26.6
Others (C) 5,679,555 1.8 5,679,555 1.3
Total Pre-Issue Share Capital
Pre
re-Issue 314,864,019 100.0 303,156,650 69.9
Eligible Employees
(pursuant to the Employee Reservation Portion) 0 0 2,380,952 0.5
Public (pursuant to the Issue) 128,374,036 29.6
Total Post-Issue Share Capital
Post
ost-Issue 433,911,638 100.0
Source: Company RHP Angel Research; Note: Fresh Equity offering calculated at lower price band of Rs42/share, *partial exit
,
Exhibit 4: Objects of the Issue
Amt. deployed Amt. to be
Estimated (as on used from Estimated schedule
Particulars (Rs cr) Cost June '10) Proceeds FY2010 FY2011 FY2012
Prepayment of loans 1,075 - 300 300 - -
Capital expenditure 93 10 83 83 - -
Capital equipment 34 5 29 29 - -
General Corporate Purpose - - - - - -
Total 1,202 15 411
Source: Company RHP Angel Research
,
August 23, 2010 4
5. Gujarat Pipavav Port | IPO Note
Investment Rationale
Location advantages
GPPL's location on the west coast is strategic to service the landlocked north and
north-western region of India, which contribute ~65% of the cargo handled at the
Indian ports. Over the last five years, cargo traffic has registered 11.3% CAGR for
west coast ports v/s 5.2% for the east coast. It provides a convenient international
trade gateway to Europe, Africa, America and the Middle East. Further, JNPT which
handles around 60% of the container traffic may lose market share to ports like Mundra
and Pipavav who have larger draft to accommodate, faster evacuation and competitive
rates.
Exhibit 5: East coast traffic Exhibit 6: Weast coast traffic
CAGR 5.2% 400
300 337
264 1.3 %
255 255 350 CAGR 1 311
250 232 294
216 300
251
200 250 220
(mn tonnes)
(mn tonnes)
200
150
150
100
100
50
50
0 0
FY2006 FY2007 FY2008 FY2009 FY2010 FY2006 FY2007 FY2008 FY2009 FY2010
Source: IPA, CRISIL, Angel Research Source: IPA, CRISIL, Angel Research
Better connectivity to road and rail network
GPPL owns 38.8% stake in PRCL, which runs double stack container trains unlike
other ports that helps lower freight costs and ensures faster evacuation of containers
from the port. Further, the port has a four-lane road link of ~10km to the national
highway for transporting cargo to and fro the port. The distance via road from the
port to the key trading hubs such as Ahmedabad, Jaipur and Delhi is 302km, 873km,
and 1,115km, respectively.
No regulatory hurdles to set tariffs coupled with lower royalty charges
GPPL is not a major port and hence is not covered under the purview of the Tariff
Authority for Major Ports (TAMP). Thus, GPPL is free to set its own tariffs making it
nimble to respond to changes in market dynamics. In order to attract volumes and
combat with global recession, GPPL had reduced tariff in CY2009. However,
management has indicated to hike its container tariff by ~20-25% from CY2010
following improvement in the economy. On the other hand, as per the concession
agreement, GPPL is likely to pay waterfront royalty of Rs10/tonne for solid cargo and
Rs20/tonne for liquid cargo with 20% hike every three years. This works out to 1.5-
2.5% of revenues as royalty to the Gujarat Maritime Board (GMB), which is quite low
compared to the other private ports like Mundra.
August 23, 2010 5
6. Gujarat Pipavav Port | IPO Note
Diverse cargo mix
GPPL can handle a diverse mix of cargo such as coal, fertilizer, steel, minerals and
container. Thus, the port caters to a diverse set of end users. Further, re-location of the
LPG cargo jetty has resulted in zero revenues since the last two years as it was converted
into a multi-purpose cargo berth. However, we believe that the LPG cargo jetty will
start generating revenues from CY2011.
Exhibit 7: Cargo mix
4,500
4,000
3,500
3,000
('000 tonnes)
2,500
2,000
1,500
1,000
500
0
CY2008 CY2009 1QCY2010
Coal Fertiliser Steel Minerals Containers Others
Source: Company RHP Angel Research
,
Leveraging on promoter's global presence
APM Terminals is one of largest container terminal operators in the world with a
global network of 50 terminals spread across 34 countries and five continents. In
CY2009, globally APM terminals handled 31mn TEUs with revenues of US $3bn.
GPPL derived ~26.2% of revenues in CY2009 from the APMM group and has exclusive
rights for Maserk vessels to be called at the Pipavav port, which will provide visibility.
Exhibit 8: Revenue contribution from APMM group
40
34.2
35
28.6
30 26.2
25 22.5
(%)
20
15
10
5
0
CY2007 CY2008 CY2009 1QCY2010
Source: Company RHP Angel Research
,
August 23, 2010 6
7. Gujarat Pipavav Port | IPO Note
Margins to improve with increase in utilisation rates and reduction in penalty
During CY2009 company experienced OPM expansion of 13% due to better capacity
utilization. Going ahead, we believe with favorable industry dynamics (15% container
and 8% cargo traffic CAGR over FY2010-15E) and economy back on track, this trend
to continue and company to enjoy operating leverage leading to enhancement in
margins. We have penciled in ~25% margin expansion to 45%,(Mundra clocks EBITDA
margins of 70% and GPPL management has guided margins at ~60-70%) over next
three years.
GPPL is bound to transport minimum guaranteed traffic of 3mn tonnes through Pipavav
Rail Corporation Ltd (PRCL). GPPL paid around Rs 108cr and 30cr in CY2008 and
CY2009 respectively as penalty charges due to non-fulfillment of the Minimum
Guaranteed Quantity. PRCL currently provides railway transportation for ~ 35.0% of
the cargo going through the Port. We expect penalty charges to PRCL to fade away
with growing traffic which will further enhance margins.
Exhibit 9: EBIDTA trend
250 45.0 50
40.0 45
200 40
31.0 35
(Rs cr)
150 30
(%)
20.1 25
100 20
15
7.2 7.6
50 10
5
0 0
CY2007 CY2008 CY2009 CY2010E CY2011E CY2012E
EBITDA (LHS) EBITDA Margins (RHS)
Source: Company RHP Angel Research
,
August 23, 2010 7
8. Gujarat Pipavav Port | IPO Note
Concerns
Slowdown in economy to impact global trade
As per the International Monetary Fund (IMF), the global economic growth rate has
declined from 5% in 2007 to 2.2% in 2009. As a result, sea-borne trade registered
subdued growth in 2009. Pertinently, GPPL's growth in container and bulk cargo is
largely dependent on the growth in sea-borne trade. However, unlike the developed
economies, the Asian countries, which are witnessing a surge in traffic following
improving economic conditions, contribute ~ 70% of overall sea-borne trade. Thus,
we expect GPPL to witness 25% CAGR in container traffic and 10% in bulk cargo over
the next three years on a low base and growing sea borne trade.
Competition risk
Competition may increase on the back of development of new ports in India as GMB
has invited bids for the development of additional ports in Gujarat, which may force
GPPL to reduce tariffs.
Dependence on small number of customers
The company's top five customers contributed ~46% of revenues with the promoter
group, APMM contributing 26% of overall revenues in CY2009. Hence, loss or significant
decrease in spend by any of its major customers may impact the company's profitability.
August 23, 2010 8
9. Gujarat Pipavav Port | IPO Note
Outlook and Valuation
At the lower band of Rs42, GPPL trades at a premium to its global peers at 2.5x
CY2011E P/BV v/s 2.0x respectively. We believe that GPPL comes off a low base
compared to some established ports and to that extent the growth should command a
premium. On the domestic front, the company is trading at a substantial discount to
the Mundra port, which trades at 5.9x FY2012E P/BV. We believe that GPPL's discount
to Mundra port is justified given the latter's large scale of operations, revenue
contribution from its SEZ and higher profitability growth. However, given GPPL's high
growth potential we believe that the 57% discount is unwarranted. Consider, over the
last couple of years, GPPL has exhibited strong growth rates at the operating level
following an improvement in utilisation levels and growing traffic. GPPL also expects
to retire high-cost debt utilising Rs300cr from the issue proceeds resulting in reduction
in interest expenses from Rs115cr in CY2009 to Rs92cr in CY2011E. Further,
management has indicated to hike container tariffs in line with market dynamics with
re-negotiation of contracts from CY2010. Consequently, we expect GPPL to report
profit from CY2011E. We recommend Subscribe to the IPO at the lower price band
long-term
with a long-term perspective.
Exhibit 10: Peer Comparison - Indian
Market Cap P/E (x) P/B (x) EV/EBITDA (x)
EV/EBITDA CAGR
EPS CAGR (%)
Companies US $mn CY09 CY10 CY11 CY09 CY10 CY11 CY09 CY10 CY11 CY09-11E
Shanghai International Port Co. 12,891 32.4 19.2 18.1 3.8 2.6 2.4 18.8 11.4 10.7 13.8
Shenzhen Chiwan Wharf holdings 1,265 17.5 17.1 15.7 2.6 2.9 2.7 12.5 9.4 8.1 25.3
Shenzhen Yantian Port Holdings 1,239 22.5 17.9 17.3 2.5 1.8 1.9 34.7 19.2 27.0 2.7
Forth Ports Plc 923 11.2 22.2 20.0 2.6 2.3 2.2 15.3 13.1 12.4 4.4
DP World 8,682 21.4 26.2 20.9 1.0 1.1 1.1 13.4 12.1 10.6 11.8
Average 21.0 20.5 18.4 2.5 2.1 2.0 18.9 13.0 13.8 11.6
Mundra Port and SEZ* 6,884 49.1 33.1 22.6 9.2 7.4 5.9 36.0 24.2 17.8 48.6
GPPL# 391 - - 238.8 4.3 2.5 2.5 51.5 29.3 17.1 -
Source: Company RHP Bloomberg, Angel Research, Note: * Fiinancial year ending March; Prices as on 20th August, 2010; At lower end of price band Rs42/share
, #
August 23, 2010 9
10. Gujarat Pipavav Port | IPO Note
Industry Overview
Non-major Indian ports to play a big role
As per data from the Department of Shipping, there are 12 major ports and ~190
minor ports handling 95% volumes and 70% in value terms of India's cargo. The
classification of a port as major/non-major is based on the control and governance
rather than its capacity or cargo traffic handled, with major ports falling under purview
of the Port Trusts regulated by the Central government and the non-major ports being
regulated by the State governments or run by private entities. Currently, just 60 non-
major ports handle traffic.
India's international trade recorded a CAGR of 19.0% during FY2005-10 with its
share in total world trade (including services) increasing from 1.1% in 2004 to 1.5% in
2008. It is interesting to note that while the traffic at major ports has risen at a CAGR
of 7.5% during FY2000-10 to 561mn tonnes, the non-major ports have witnessed a
CAGR of 15.6% to 266mn tonnes during the mentioned period. Consequently, the
share of non-major ports in total volume has increased from 18.7% in FY2000 to
32.0% in FY2010. While India's GDP grew at an average 8.0% between FY2006-10,
the port traffic increased at a CAGR of 9.8% during the period. As per CRISIL estimates,
the port traffic is expected to surge at a CAGR of 9.0% to 1,163mn tonnes between
FY2010-14 on the back of strong growth in the economy. Notably, traffic at non-
major ports is expected to grow at a faster CAGR of 19.5% (to 493mn tonnes) compared
to the major ports, which are expected to post a CAGR of 4.9% (674mn tonnes) over
the period. The share of non-major ports is thus likely to increase to 42.2% in FY2014.
Exhibit 11: Traffic handled at Indian ports
800
674
700
600 561
519 530
493
500 464
424
400
300 266
186 203 203
200 145
100
0
Major ports Non-major ports
Source: CRISIL Research 2010 Report, Angel Research
Container cargo to outpace general cargo
It is estimated that 75% of the cargo, primarily capital and engineering goods, textiles
and food items can be transported in containers. It is estimated that globally
containerisation levels stand at ~80%, while in India it has stabilsed at around 50% in
the past few years. Moreover, while there is a direct relation between growth in the
economy and international trade for a country, it is also observed that demand for
containers changes in tandem with the GDP growth. In India, container traffic logged
a CAGR of 16% between FY2005-10 from 4.0mn TEU to 8.4mn TEU on the back of
strong growth in international trade. The share of non-major ports has seen a
August 23, 2010 10
11. Gujarat Pipavav Port | IPO Note
phenomenal increase from less than one per cent in FY2005 to 14.0% in FY2010, led
by ports like Mundra and Pipavav. This was because of the strategic location of the
ports in Gujarat, which combined with Maharashtra handles 60% of the total container
traffic. Given a 2.0x sensitivity of the container growth to the GDP growth,
containerisation levels are expected to remain robust going forward.
Exhibit 12: Container traffic trend Exhibit 13: Containerisation levels
35.0 5.0 600 56
avg. factor of 2.1x to GDP growth
30.0 54.2 54
4.0 500
52.2 52
25.0 51.5
400
(mn tonnes)
3.0 50
20.0
(%)
(x)
(%)
300 48
15.0 47.4 47.2 47.5
2.0 46.2 46
200 45.2
10.0
44
1.0
5.0 100
42
0.0 0.0 0 40
FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10
GDP growth (LHS) Container traffic yoy chg (LHS) EXIM traffic at major ports -LHS Container share in non bulk cargo -RHS
Source: Ministry of Finance, IPA, Angel Research Source: IPA, Angel Research
Dry Bulk Cargo
The bulk cargo trade in India is driven mainly by export of iron ore and import of coal
and fertlisers. Dry bulk cargo volumes at Indian ports have registered a CAGR of 8.4%
during FY2005-10 to 406mn tonnes of which 70% was handled by the major ports.
While the bulk cargo traffic at major ports has registered a CAGR of 7.0% between
FY2005-10, the non-major ports have witnessed a CAGR of 12.1% over the period.
As per CRISIL estimates, going ahead dry bulk cargo traffic at the Indian ports is set to
increase at a CAGR of 11.2% between FY2010-15. The key drivers for such growth
include phenomenal demand for coal (expected CAGR of 19.6% over FY2010-15) by
the cement and coal-based power plants, iron ore exports (expected CAGR of 6.9%
over the mentioned period) to countries like China and Japan.
Exhibit 14: Bulk cargo traffic at the Indian ports
700
600
500 339
(mn tonnes)
400
122
300 98 89
74 81
200
353
258 262 284
100 220 236
0
FY06 FY07 FY08 FY09 FY10 FY15E
Major ports Non-major ports
Source: CRISIL Research 2010 Report, Angel Research
August 23, 2010 11
14. Gujarat Pipavav Port | IPO Note
Restated Cash Flow Statement
Particulars (Rs cr) 9M Dec.05 CY06 CY07 CY08 CY09 1QCY10
A . Cash flow from operating activities
Net Profit / (loss) before taxation (47) (52) (46) (67) (118) (28)
Adjustment for - - - - - -
Depreciation 16 24 27 37 46 12
Impairment loss on fixed assets - - - - - -
Interest expenses 31 47 40 75 116 36
Interest income (2) (4) (13) (17) (5) (1)
Exceptional items - 8 4 - 6 (2)
Preoperative expenses - - - - - -
(Profit)/Loss on sale/discard of assets - (3) - (2) - -
(Profit)/Loss on sale of investments - - - - - -
Operating profit/(loss)
before working capital changes (1) 21 13 26 45 18
(Increase)/Decrease in Inventories 1 (1) (2) (0) (0) (1)
(Increase)/Decrease in
Sundry Debtors (2) (5) 6 (4) (14) 7
(Increase)/Decrease in
Loans and Advances (6) 6 4 (23) (26) 2
(Decrease)/Increase in Sundry
Creditors and Other liabilities 20 24 48 (21) (16) (17)
Cash flow from operation 12 44 70 (22) (12) 9
Direct taxes (paid)/refunds 1 (0) (1) (4) (5) (2)
Net cash from operating activities 12 44 69 (26) (17) 8
B. Cash flow from investing activities
Purchase of Fixed assets (30) (242) (277) (149) (324) (13)
Proceeds from sale of fixed assets 2 6 - 3 - -
Investments (68) - - - - -
Interest income 1 3 5 17 12 -
Net cash from investing activities (95) (232) (272) (129) (312) (13)
C. Cash flow from financing activities
Proceeds from issue of share capital 145 - 418 - 100 -
Proceeds from long term borrowings 51 200 105 130 1,199 15
Proceeds from short term borrowings 55.0 - - 50.0 38.0 -
Repayment of long term borrowings (70) (24) (86) (61) (803) -
Repayment of short term borrowings - - - - (88) -
Repayment of preference shares - - - - (52) -
Premium on red. of pref. shares - - - - (24) -
Share issue expenses - (0.1) (1.2) - (0.1) -
Interest paid (26) (21) (26) (48) (131) (35)
Net cash from financing activities 155 154 410 71 239 (19)
Net (decrease)/increase in cash
and cash equivalents 72 (34) 206 (85) (90) (25)
Cash and cash equivalents at
beginning of year 10 82 48 255 170 80
Cash and cash equivalents at
end of year 82 48 255 170 80 55
August 23, 2010 14
15. Gujarat Pipavav Port
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Reduce (-5% to 15%) Sell (< -15%)
16. Gujarat Pipavav Port
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Research Team
Fundamental:
Sarabjit Kour Nangra VP-Research, Pharmaceutical sarabjit@angeltrade.com
Vaibhav Agrawal VP-Research, Banking vaibhav.agrawal@angeltrade.com
Vaishali Jajoo Automobile vaishali.jajoo@angeltrade.com
Shailesh Kanani Infrastructure, Real Estate shailesh.kanani@angeltrade.com
Anand Shah FMCG , Media anand.shah@angeltrade.com
Deepak Pareek Oil & Gas deepak.pareek@angeltrade.com
Sushant Dalmia Pharmaceutical sushant.dalmia@angeltrade.com
Rupesh Sankhe Cement, Power rupeshd.sankhe@angeltrade.com
Param Desai Real Estate, Logistics, Shipping paramv.desai@angeltrade.com
Sageraj Bariya Fertiliser, Mid-cap sageraj.bariya@angeltrade.com
Viraj Nadkarni Retail, Hotels, Mid-cap virajm.nadkarni@angeltrade.com
Paresh Jain Metals & Mining pareshn.jain@angeltrade.com
Amit Rane Banking amitn.rane@angeltrade.com
John Perinchery Capital Goods john.perinchery@angeltrade.com
Jai Sharda Mid-cap jai.sharda@angeltrade.com
Sharan Lillaney Mid-cap sharanb.lillaney@angeltrade.com
Amit Vora Research Associate (Oil & Gas) amit.vora@angeltrade.com
V Srinivasan Research Associate (Cement, Power) v.srinivasan@angeltrade.com
Aniruddha Mate Research Associate (Infra, Real Estate) aniruddha.mate@angeltrade.com
Mihir Salot Research Associate (Logistics, Shipping) mihirr.salot@angeltrade.com
Chitrangda Kapur Research Associate (FMCG, Media) chitrangdar.kapur@angeltrade.com
Vibha Salvi Research Associate (IT, Telecom) vibhas.salvi@angeltrade.com
Pooja Jain Research Associate (Metals & Mining) pooja.j@angeltrade.com
Yaresh Kothari Research Associate (Automobile) yareshb.kothari@angeltrade.com
Shrinivas Bhutda Research Associate (Banking) shrinivas.bhutda@angeltrade.com
Sreekanth P .V.S Research Associate (FMCG, Media) sreekanth.s@angeltrade.com
Hemang Thaker Research Associate (Capital Goods) hemang.thaker@angeltrade.com
Technicals:
Shardul Kulkarni Sr. Technical Analyst shardul.kulkarni@angeltrade.com
Mileen Vasudeo Technical Analyst vasudeo.kamalakant@angeltrade.com
Derivatives:
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Jaya Agarwal Derivative Analyst jaya.agarwal@angeltrade.com
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Abhimanyu Sofat AVP - Institutional Sales abhimanyu.sofat@angeltrade.com
Nitesh Jalan Sr. Manager niteshk.jalan@angeltrade.com
Pranav Modi Sr. Manager pranavs.modi@angeltrade.com
Sandeep Jangir Sr. Manager sandeepp.jangir@angeltrade.com
Ganesh Iyer Sr. Manager ganeshb.Iyer@angeltrade.com
Jay Harsora Sr. Dealer jayr.harsora@angeltrade.com
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Gaurang Tisani Dealer gaurangp.tisani@angeltrade.com
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