ABG Shipyard, the largest private sector shipbuilding yard in India has posted good results for third quarter ended 31st December 2007.
On a sequential basis, on a Q-on-Q basis, the net sales increased 29.79% at Rs.274.96 crore, EBIDTA was up 29.49% at Rs.83.56 crore, PBT was up 37.96% at Rs.71.67 crore and PAT was up 38.14% at Rs.47.12 crore. On an equity of Rs.50.92 crore, the EPS stands at Rs.9.25.
The company currently has an order book of Rs 8,277 crore. The company has been constantly upgrading its facilities and that is precisely one of its biggest strengths. It has expanded its existing facility in Surat and also acquired a strategic stake in Vipul Shipyard located near the existing Surat unit. ABG is also setting up a new facility in Dahej, which is expected to commence operations from April 2008. Once this facility is fully operational, the company would be able to manufacture ships up to 1,20,000 DWT (dead weight tonnage).
The company is well entrenched in the shipping sector and poised well to take advantage of the currently booming industry. Given its reputation and expertise, the company gets repeat orders which in turn help giving it better economies of scale. Though the OPM of the company has slipped marginally to 30.39% from 30.46% in the previous quarter, it is expected that given the improvements in the fortunes and margins of the shipping industry, the coming quarter will reflect a better and improved OPM.
Currently quoted at Rs.686, investors could well stay invested.
On a sequential basis, on a Q-on-Q basis, the net sales increased 29.79% at Rs.274.96 crore, EBIDTA was up 29.49% at Rs.83.56 crore, PBT was up 37.96% at Rs.71.67 crore and PAT was up 38.14% at Rs.47.12 crore. On an equity of Rs.50.92 crore, the EPS stands at Rs.9.25.
The company currently has an order book of Rs 8,277 crore. The company has been constantly upgrading its facilities and that is precisely one of its biggest strengths. It has expanded its existing facility in Surat and also acquired a strategic stake in Vipul Shipyard located near the existing Surat unit. ABG is also setting up a new facility in Dahej, which is expected to commence operations from April 2008. Once this facility is fully operational, the company would be able to manufacture ships up to 1,20,000 DWT (dead weight tonnage).
The company is well entrenched in the shipping sector and poised well to take advantage of the currently booming industry. Given its reputation and expertise, the company gets repeat orders which in turn help giving it better economies of scale. Though the OPM of the company has slipped marginally to 30.39% from 30.46% in the previous quarter, it is expected that given the improvements in the fortunes and margins of the shipping industry, the coming quarter will reflect a better and improved OPM.
Currently quoted at Rs.686, investors could well stay invested.
Source: sptulsian.com
