Motilal Oswal has come out with its report on infra sector. In May 2012, cargo traffic at major ports was 47.6m tons, down 5.1% YoY. Cargo volumes for YTD FY13 declined 5.7% YoY to 94m tons.
Motilal Oswal has come out with its report on infra sector.
Cargo volumes continue to decline: In May 2012, cargo traffic at major ports was 47.6m tons, down 5.1% YoY. Cargo volumes for YTD FY13 declined 5.7% YoY to 94m tons. We believe that the volume decline during the month is due to the ban on iron ore exports and decline in fertilizer/POL cargo.
Fertilizer/POL cargo witnesses de-growth: May cargo volumes de-grew mainly due to fall in iron ore exports (which plunged 28.7% YoY to 5.5m tons). The ban on iron ore exports continues to be a drag on volume growth in the solid category. Additionally, fertilizer cargo volumes declined 25.5% YoY to 0.8m tons (2% of total cargo) and POL volumes de-grew 9% YoY to 14.7m tons (31% of the total cargo). Container cargo recorded 3.5% YoY growth in May to 10.3m tons (20.3m tons in YTD FY13). Coal cargo grew 11.8% YoY in May and 5.9% YoY in YTD FY13. Other cargo recorded a growth of 3% YoY in May and 0.8% YoY in YTD FY13.
Container cargo traffic at JNPT grew 5.1% YoY: Container cargo volumes at JNPT grew 5.1% YoY to 5.1m tons for the month of May. Except JNPT, all-India container cargo grew 3.5% YoY in May and 2.3% YoY in YTD FY13.
Five ports posted cargo traffic growth in May; Ennore posted highest growth of 46.8% YoY: In May 2012, five major ports posted positive cargo growth. Cargo traffic grew 46.8% YoY at Ennore and 25.8% YoY at Cochin. At these ports, volumes were boosted by coal/POL cargo. At the Chennai port, volumes declined 8.2% YoY to 4.4m tons, driven by container and other cargo. Kolkata port reported the highest de-growth in cargo volume at 21.3% YoY, led by container cargo and other cargo.
Coal imports continue to rise (March 2012): In March 2012, coking coal imports grew 32% YoY to 2.1m tons (v/s 1.6m tons in March 2011), primarily due to higher steel production. In FY12, coking coal imports grew 61% YoY to 26m tons. Non-coking coal imports grew 57% YoY to 4.2m tons in March 2012 (v/s 2.6m tons in March 2011) and 52% YoY to 30.7m tons in FY12.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Set email alert for
ADS BY GOOGLE
video of the day
HDFC Bank, ICICI Bank top picks: Jitendra Sriram