Aegis Logistics Q4 Review - Throughput Declines But Management Optimistic In The Near Term: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Aegis Logistics Ltd. reported a lower-than-estimated Ebida of Rs 2.0 billion (our estimate: Rs 2.3 billion; up 42% YoY, down 6% QoQ) due to lower volumes in Q4 FY23. Gas division posted 88% YoY revenue growth in FY23 driven primarily by 61% YoY growth in sourcing volume. However, management highlighted that the sourcing division contributes very little to Ebitda due to its slender margin of ~$1/million tonne. Although LPG terminalling throughput declined 11% QoQ in Q4 FY23, management expects throughput to reach ~4 million metric tonne in FY24 from ~3.3 mmt in FY23 driven by ramp-up of Kandla terminal. The Kandla terminal’s exit runrate throughput stood at around 70,000 mt/month at end-Q4 FY23. A capex program of Rs 45 billion has been planned for the joint venture over 2023-2027, which would be funded via internal accruals, debt, and some cash injection by both shareholders. However, such a high and ambitious capex will burden Aegis Logistics’ balance sheet, with the focus shifting away from the LPG business that may elevate uncertainty..Click on the attachment to read the full report:.Q4 FY23 Results Review — Financials Reprise Role, Auto Shines: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aegis Logistics Q4 Review - Throughput Declines But Management Optimistic In The Near Term: Motilal Oswal

Miss on Ebitda but profit after tax beat estimates.

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