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Essar Ports Ltd has reported a net profit of Rs 40 crore for the quarter ended September 30, 2011, aided by increase in cargo handling charges. The quarter figures cannot be strictly compared as the company was re-listed in May this year after de-merging the port business of Essar Shipping, Ports and Logistics Ltd.
The company had a net profit of Rs 11 crore in the same period last year. Of this, port business alone contributed Rs 5.30 crore, according to company officials.
The profit has gone up because of the increase in port tariff. Captive cargo (from Essar Group companies) accounts for nearly 95 per cent of the port's volume, they said.
The average realisation for the quarter stood at Rs 233 a tonne so far in the current year against Rs 174 a tonne in the last fiscal on higher tariff.
Essar Ports' revenue for the quarter increased to Rs 279.14 crore from Rs 178.96 crore, registering a 56 per cent increase.
The erstwhile ESPLL revenue was Rs 813.35 crore in the same period.
Cargo handling
The company handled 9.73 million tonnes of cargo in the quarter compared to 9.63 million tonnes in the year-ago period.
It expects to handle about 44 million tonnes in the current fiscal, said the Essar Ports Managing Director, Mr Rajiv Agarwal.
He said the port's capacity would be raised to 125 million tonnes by 2015. On capital expenditure, Mr Agarwal said the company would invest Rs 2,800 crore to fund the ongoing expansions through a 3:1 debt-equity mix.
The company will be retiring part of its Rs 5,000-crore debt through overseas borrowing.
Other ports
The company has two operational ports at Hazira and Vadinar, both in Gujarat. The Hazira port has a dry bulk cargo handling capacity of 30 mtpa (million tonnes/annum)while Vadinar has liquid cargo handling capacity of 58 mtpa.
Essar Ports is currently executing two terminals at Paradip in Orissa with a capacity of 30 mtpa comprising iron ore berth of 16 mtpa and a coal berth of 14 mtpa.
The company is also setting up a dry bulk terminal at Salaya in Gujarat with a capacity of 20 mtpa and plans to expand its Hazira port capacity to 50 mtpa.
“Essar Oil's Vadinar refinery is being expanded, which would help utilise Vadinar port's increased capacity. Work on the Paradip iron ore terminal is in progress and is likely to become operational by Q4 FY12.
“On the Salaya port, the company is expecting forest clearance from the Ministry of Environment and Forests,” Mr Agarwal said.
On Wednesday, Essar Port's shares on BSE closed 1.80 per cent up at Rs 56.50.
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