LAHORE: Pakistan International Container Terminal (PICT) continued its growth in terms of handling volumes and revenues over 9MFY11 period, as the company handled 506,711 TEUs (Twenty Equivalent Units) witnessing an increase of 14 percent.
Turnover for the company increased by 17 percent primarily due to growth in utilization levels by 10 percent and 4 percent growth in turnover.
Currently turnover for the company stands at $103 and is likely to increase going forward as congestion at the port increases with rising trade activity. Moreover, appreciation of USD against PKR is likely to benefit the company, as its revenues are entirely dollar denominated.
On quarterly basis, utilization level during 3QFY11 period stood at 99 percent, witnessing QoQ increase of 8 percent. However turnover fell by 3 percent to $103. Consequently 3QFY11 gross profit for the company stood at Rs663m; YoY and QoQ increase of 21 percent and 7 percent respectively. Net profit for the company over 3QFY11 period stood at Rs327m witnessing a YoY and QoQ increase of 30 percent and 10 percent respectively.
In the short to medium term we expect any depreciation of rupee to favour the company. For the remainder of the year, we expect utilization level to stand at 100 percent and turnover/TEU to clock in at USD108.
For the next 5 year period, we expect PICT to experience top-line CAGR of 14 percent and 26 percent; the same supported by 1) rise in volume with CAGR of 6 percent coupled with 5 percent annual increase in utilization of capacity 2) 4 percent annual increase in USD based revenue per TEU 3) 5 percent annual depreciation of PKR against USD and 4) 83 percent decline in finance costs expected over next 5 year period.