• Income from operation (excluding other non operating income) was higher by 38% to Rs 155.82 crore facilitated by higher container volume and higher realization yoy. Container volume for the quarter stood at 203000 TEUs, a rise of 42%yoy and 8%QoQ. On the other hand the bulk cargo throughput for the quarter stood at 823000 MTs, a de-growth of 19%yoy and growth of 19%QoQ. Container throughput grew on account of 2 new services, upsize of one service and organic growth in EXIM volume. But the bulk cargo declined by 19% due to lower mineral volume. The company resorted to tariff rationalization in mid of August 2013 and that has facilitated higher realization for the quarter boosting topline growth along with reversal of volume rebate for not meeting the volume commitment.
• Operating margin expanded by sharp 1380 bps to 58.8% and this can be explained by higher volume, realization and cost efficiency measures of the company. Operating expenses as proportion to sales was lower by 780 bps to 19.6%. Similarly staff cost and other expenses was lower by 110 bps (to 7.8%) and 480 bps (to 13.8%) respectively.
• Other income was up by 44% to Rs 7.02 crore with higher interest income on short-term deposits. With debt coming down the interest cost was lower by 13% to Rs 8.29 crore. But the depreciation cost was higher by 13% to Rs 17.08 crore. Higher depreciation charge is due to completion of capex, as well as change in method of depreciation in case of small assets. Earlier the company used to fully depreciate P&M and F&F individually costing Rs 5000 or less in the year of purchase but that was now revised to assets costing individually Rs 125000 or less and this seems have resulted in additional depreciation charges for the quarter. Gained thus, the PBT (before EO) more than doubled to Rs 80.53 crore, a rise of 128%.
• After accounting for nil EO and nil tax provision for the quarter as well as corresponding previous period, the PAT was up by 128% to Rs 80.53 crore.

Half Yearly performance

Sales were higher by 32% to Rs 324.48 crore. But with OPM expand by 1340 bps, the operating profit was up by 71% to Rs 190.95 crore. After accounting for higher other income (boosted by higher interest income ), lower interest cost and higher depreciation, the PBT (before EO) was higher by 115% to Rs 151.77 crore.

The EO expenses for the period was Rs 10.22 crore compared to nil in the corresponding previous period. The EO expenses for the quarter represents payment made by the company in Jan 2014 amounting Rs 10.22 crore towards mobilization and other services relating to dredging activity undertaken as part of port expansion project. Consequent to the revision in the said port expansion plan approved by the BoD in their meeting dated April 17, 2014 and this amount is fully written off.

EO income for corresponding previous period is nil. Thus the PBT (after EO) was higher by 100% to Rs 141.55 crore. After accounting for taxation (MAT credit) the net profit more than doubled to Rs 141.44 crore (up 100%).

The stock hovers around Rs 143.60.