Aegis Logistics (AEGISLOG) Q4 02/03 earnings summary

Executive summary

• FY2002-03 was a consolidation year; recessionary conditions, Iraq-war uncertainty and lower volumes pressured revenue and earnings. PAT was Rs. 7.01 crore versus Rs. 7.11 crore in FY2001-02.

• Cost reduction and productivity measures supported operations; EBITDA was Rs. 13.38 crore, while EPS was Rs. 4.32.

Financial highlights

• Sales and other income fell to Rs. 70.76 crore from Rs. 108.11 crore YoY; PBT was Rs. 6.26 crore versus Rs. 12.18 crore.

• PAT was Rs. 7.01 crore versus Rs. 7.11 crore; EBITDA was Rs. 13.38 crore versus Rs. 20.56 crore.

• Proposed dividend was Rs. 0.50 per share, down from Rs. 0.80; the reduction reflected terminal dues and associated Jalgaon costs.

Outlook and guidance

• Strategy targets higher throughput, productivity, longer-term major-customer contracts and expansion to a second liquid-logistics site.

• Auto LPG and commercial LPG are targeted growth areas; volume growth is expected to be gradual amid regulatory uncertainty and public-sector competition.

• Deregulation and new private-sector entrants in petroleum retailing are expected to increase demand for logistics services.