Petronet LNG

The posted a set of disappointing numbers for Q4FY13, with net profit, sequentially falling 23% at Rs.245 crore. This was on an almost flat revenue at rs.8465 crore, up less than 1%.  YoY, the growth in net profit was a meager 0.01% while revenue was up more sharply at 33%.  Volumes were status quo at 7.5 million tones and this was due to lower tolling volumes, wherein it provides service cargo for GAIL and GSPC.  Higher raw material costs also did not help the margins. But the performance, when looked from the entire year perspective, was one of its best. For FY13 it posted its highest ever net profit at Rs.1149 crore, up 9%. Its plant at Dahej worked 105% capacity.

Looking ahead, the company’s new terminal at Kochi, a five-million-tonne-per-annum LNG import terminal  is expected to go on stream in July. But nothing major in terms of earnings boost can be expected in immediate short term as it will have few customers to begun with, given the fact that only one pipeline has been connected and that too, in Cochin only. It is only later towards end of FY14 that volumes are expected to pick up once the other two pipelines also get connected. Also once its commissioned, there will be higher depreciation and interest outgo, which coupled with lower volumes could keep margins subdued. Though the company has major plans for its Dahej unit and LNG plant, these will take time to take off. All in all,  first half could remain flat.