Adani Ports And Special Economic Zone Ltd.’s quarterly profit jumped fourfold over the year earlier as its acquisition of Krishnapatnam port continues to drive volumes. Still, the earnings missed estimates.
Myanmar Port's Fate Uncertain
Adani Ports also said it could abandon its container terminal project in Myanmar, bids for which it had won only last year, and write down the investment if it’s found to be in violation of sanctions imposed by the Office of Foreign Assets Control of the U.S.
This comes after a military coup in the Southeast Asian nation on Feb. 1 led to the deaths of hundreds of civilians, drawing international backlash and sanctions against the military leadership.
Adani Ports, which has already invested $127 million (around Rs 889 crore) in the project, said it’s in discussion with U.S.-based counsel Morrison Forrester to ensure compliance with OFAC and also plans to proactively approach OFAC to ensure it’s not violating the sanctions.
Outlook
- The company expects volumes to range between 310 MMT and 320 MMT for the ongoing financial year, including 10 MMT of Gangavaram Port from Q4 FY22, a growth of 29%.
- Consolidated revenue is pegged at Rs 16,000-16,800 crore for FY22. Port revenue pegged at around Rs 14,000 crore, while logistics revenue seen to be around Rs 1,400 crore.
- It expects capex of around Rs 3,500 crore, including maintenance capex of Rs 500 crore.
- The company has guided for free cash from operations to be around Rs 5,500 crore in FY22.
Shares of Adani Ports closed 0.87% higher before the results were announced, compared with a 0.94% drop in the benchmark Nifty 50.
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