Aegis Logistics (AEGISLOG) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 marked a strong recovery: operating revenue rose 16.8% YoY, EBITDA increased 41%, and PBT rose nearly 80%, supported by higher volumes and cost savings.

• Strategy narrowed to liquid-terminal logistics and LPG storage and distribution; the Chemical Distribution Division was closed after cost reduction and diversification efforts failed.

Financial highlights

• Operating revenue was Rs. 80.80 crore versus Rs. 69.19 crore; sales and other income reached Rs. 84.24 crore versus Rs. 70.76 crore.

• EBITDA was Rs. 18.89 crore, up 41%; PBT was Rs. 11.25 crore versus Rs. 6.26 crore, and PAT was Rs. 8.55 crore versus Rs. 7.01 crore.

• EPS was Rs. 5.23 versus Rs. 4.32; proposed dividend increased to Rs. 0.80 per share from Rs. 0.50.

Outlook and guidance

• Priorities include increasing Mumbai petroleum-handling volumes, providing more end-to-end logistics services, and expanding to multiple locations and new ports.

• LPG growth plans emphasize throughput contracts with major oil and gas companies and auto-LPG retailing; building a significant auto-LPG business is expected to take at least five years.

• Terminal capacity expansion and higher LPG utilization through new market segments are planned; around 50% of logistics capacity is under long-term contracts.