Key takeaways of conference call

Container cargo was up 3% on sequential basis with company maintaining peak Q42012 volumes. This is despite lower vessel call to the tune of 7 nos due to Chinese New Year. The calls by Hyundai are slowing down and its last call will be in May 2013. At the same time Hanjin, a Korean Container shipping line alike Hyundai started its call/service from April 4, 2013. Hyundai's current volume contribution is 3000 TEUs/month. Hanjin is also from same area with similar service pattern type and expect Hanjin to ramp up its volume to Hyundai's level in next 4-6 months. And therefore the downside impact of Hyundai moving out will be nullified by commencement of Hanjin's service over this year.

Overall container business is not yet stable as the container Liners are combining, upsizing, downsizing their vessels and this make container business not stable.

Lower dry bulk volume (down 26%) on sequential basis is only on account of lower coal volumes. The downside impact of it was offset by increase in fertilizers and wheat volumes. Despite that the company could not reach Q42013 dry bulk volumes. Fertilizer volume is seasonal and the season starts from June-July of a year with ensuing cropping season. The wheat volume depends on the policy of GoI.

Blended realization of bulk cargo is about Rs 550/ tonne.

The 2 lane concrete 10 km road connecting Highway to Port main Gate will get completed soon by end of current quarter or start of next quarter. Once this 2 lane is over the existing 2 lane will be concretized. Liquid Farm (storages tanks by operators) will be up a running from Dec 2013.

1245 mln TEUS Higher container volume by 50000 TEUS was negated by lower hinterland cargo mainly i.e. coal which was impact by rail road fleet differentials. Initiated various initiatives

Income from operations - Inspite of lower bulk cargo (down 24%) and higher container volume(up 3%) was largely due to better realization and change in cargo bulk mix, which resulted in overall higher revenue.

Currently realization per TEUs Rs 4600-4800. Container realization for the quarter is higher due to rebate reversals on account of non fulfillment of volume commitments. Some of contracts with liners got completed this quarter and on which the rebate reversal was accounted and the impact of rebate reversal for the quarter was Rs 47 million. Higher container realization was partly offset by Lower marine revenue on account of skipped vessel calls by ships due to Chinese new year as well as lower reefer volume (due to off season, the next reefer season starts only by Sep-Oct 2013). Reefer volumes were about 70% compared to previous quarter.

Rail freight differentials continue to hurt upcountry coal volume. Initiated various actions to regain coal volumes with various state holders.

No tariff increase in container biz. On bulk side the company handled more fertilizer than coal compared to previous quarter.

Marine revenue typically accounts about 10-15% of total revenue.

The rebate is given on fixed tariff on fulfilling minimum volume per year. At the time of contract renewal at the end of the year if the liner falls short of volume commitment the rebate offered over the years will be adjusted.

Expansion project the mobilization will start in next 2 months. Of the total project cost about 20-25% will be incurred in CY2013 and 40-50% in CY2014 and balance in CY2015. After the project is complete the port will have 1.5 mln TEU capacity. The new container berth will free the current multipurpose berth entirely for bulk cargo doubling the capacity of bulk cargo to any where between 8-9 mln tone depending on the commodity handled.

PRCL will get some part of the increase in tariff hike by Indian Railways as rail network owner.

Typically coal realization will be about Rs 250-275/ tone, fertilizer is Rs 375-425/tone and wheat is Rs 900-1000/tone.

Competition from other Gujarat ports expansions: Dahej Port – commenced operation that is captive volumes of port owner. The as far as coal is only the differential in freight tariff that affected our volume and not competition. Hazira Ports container Handling capacity is 650000 TEUS. Since it is targeting the Navasheva market and there is no train connectivity as far GPP's hinterland so can't consider it as a competition. They are not looking at hinterland and their focus is Navaseva.

Excluding interest saving 72% higher net results. On yoy basis

Mechanisation of fertilizers shed is not fully completed and that will be completed by start of next season. The following season will have the full benefit of it.

Wheat cargo handled in this quarter is about 110000 tonnes. Of the total bulk throughput 50000 tonne is coal and balance is fertilizer and wheat.

The impact of new service line added by APL & Hyundai ( commenced in Oct 2012 & another on December 2012) is reflected in Q1CY2013 with TEUs throughput higher by 5000 TEUs.

Other operating income comprising of lease rental, reefer rate subsidy and other miscellaneous income was lower largely due to lower reefer volume. Secured adhoc offshore vessel calls and the revenue on account of this is Rs 30 mln. Thus the net impact on revenue is higher by 5% that is Rs 57 mln.

Equipment hire chares is lower with phasing out of reach stakers with installation of RMGS in Q4CY2012. Handling charges is higher due to change in commodity mix from typical coal accounting larger junk to fertilizers, wheat. All other expenses are generally in line with previous quarter.

Other expense includes one time exp of Rs 5 mln for refurbishment of key cranes in berth 3.with this company has refurbishes all its 3 old cranes. Previous quarter ending Dec 2012 also include a favorable reversal of provision of receivables on receipt of the collections.

Other income - Previous quarter had favorable write back of an Insurance claim otherwise it is inline with previous quarter.

Other income for the quarter of Rs 104 mln consists of Rs 30 mln on account of few adhoc offshore vessels calls and balance are from lease rentals and other miscellaneous etc.