Mundra Port and Special Economic Zone (MPSEZ) continued to outperform the major ports in the country in terms of both container and bulk cargo volume growth during the September quarter.
However, the slowing western economies may impact the growth rate of container volumes in the coming quarter, thereby pulling down the performance of the company.
In the quarter ended September 2011, volumes at Mundra port grew 34% year-on-year compared with a combined growth of 1% year-on-year of all the major ports. With this, MPSEZ has now become the fourth-largest port in terms of total cargo volumes in the country.
In the September quarter, cargo volumes at Mundra increased year-on-year by 41% to 12.40 million metric tonnes (MMT). Coal imports were the main driver for the company which grew 56% year-on-year.
The government has started levying a minimum alternate tax (MAT) of 18.5% on book profits on SEZ developers effective this financial year. Though the company has filed a PIL against the levy of MAT on SEZ developers, MAT provisions have been made and it has considered a MAT credit of 55 crore for the current quarter.
Coal imports from Mundra port is likely to increase after the commencement of two power plants near the port.
Container volumes handled at Mundra Port is set to get a boost with the commencement of double stack container trains from Container Corporation of India between Patli in the national capital region and the Mundra port.
On a trailing 12-month basis, MPSEZ's stock trades at price to earnings (P/E) multiple of 26.6. The stock price seems to fairly value the growth potential and future expansions.
Source: Economic Times
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