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Over the last six years, traffic at JNPT (together with Container handling & storage income 184 215 309
the traffic handled by BOT operators) has increased at Total Income 398 460 580
a CARG of 22% from 11.72 mn MT in FY’99 to 31.19 PBILDT 216 283 375
mn MT in FY’04. In view of increased traffic, JNPT would Depreciation 39 37 29
be required to intensify its efforts to enhance the Operating PBIT 177 247 346
capacity. Add: Finance & Misc. Income 103 86 66
Container Terminal Less: Interest 147 113 140
Less: Misc. Expenses 22 100 38
JNPT together with NSICT handled 58.4% of the total PAT 113 128 203
Indian container traffic. Container traffic at the port has PBILDT/Total Income (%) 54.2 61.6 64.6
increased at an impressive CARG of 28% over the last
PAT/Total Income (%) 28.4 27.8 35.1
six years. In the last few years, NSICT accounted for a
ROCE (%) 18.1 25.7 31.3
majority of this growth, though JNPT benefited from
RONW (%) 10.0 15.9 36.1
higher container handling & storage charges, port & dock
Debt Equity ratio 0.7 3.0 1.5
charges and royalty income as per revenue sharing
Interest Coverage 1.3 2.2 2.5
agreement. During FY’04, NSICT handled 1.2 million
TEUs, whereas, JNPT’s own container terminal handled Current Ratio 2.3 1.3 5.3
traffic of 1.04 million TEUs.
The last four years have seen a transition in JNPT’s
Cont ainer s ha n d l e d b y J N P T d e c l i n e d post business model from a “Service port” to a “Landlord port”
commencement of operations by NSICT in FY 2000 model, in a bid to keep ahead of increasingly intense
and in FY 2001, but the trend reversed thereafter as competition. As per its plans, port and dock charges and
NSICT reached its maximum limits of operations. The royalty income are expected to form a significant
capacity utilization of JNPT’s facilities improved component of its total income in the coming years. JNPT
si gnif ic ant ly in th e l a s t tw o y e a rs w i th greater has discontinued its bulk terminal operations from
operational efficiency. This is evident from shorter October 2003 and diverted liquid bulk cargo operations
turnaround time, shorter pre berthing waiting time and to new liquid cargo berth of M/s BPCL. The private
higher output per ship berth day. Also, NSICT has been operators pay royalty to JNPT based on quantum of
plagued by congestion problems, which, to a certain cargo handled by them. Royalty from BOT operators
extent, has diverted the traffic to JNPT’s own terminal. increased from Rs.186 crore in FY’03 to Rs.403 crore
in FY’04. Also about 53% of total port and dock charges
Financial Performance
of JNPT in FY’04 originated from the two BOT operators.
JNPT’s total income has grown at a CAGR of 14% since JNPT has witnessed all round improvement in its
FY’00. However, this growth has been inconsistent over financials during FY’04; this is reflected in improved
the last 5 years. Total income experienced a fall in FY’01 interest coverage, ROCE and higher profit margins.
due to commencement of operations at NSICT and
subsequent cannibalization of JNPT’s container traffic. JNPT was not liable to pay income tax u/s 10 (20) of the
Subsequently, during FY 02 and FY 03, there had been IT Act, till FY02. This exemption is not available from
a steady increase in container traffic at JNPT. In FY’04 FY’03. In FY’04, JNPT has not made any provision
also, total income increased by 26% mainly due to higher towards taxes because of substantial depreciation
income from container traffic. benefits.
Industry & Prospects Overall JNPTs revenues are expected to show high
degree of stability in future. The effects of traffic and
The growth in container traffic over the past decade is tariff downsides on JNPT’s revenues get mitigated to
higher than the overall growth of aggregate cargo traffic some extent by sizeable revenues from the BOT
in the port sector (including minor and intermediate operators in the form of royalty income and VRC.
February 2005
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