Q1 Results: Adani Ports’ Profit Beats Estimates On Higher Volumes

Adani Ports And Special Economic Zone Ltd.'s profit beat estimates in the quarter ended June on higher volumes and other income, and foreign exchange gains.

Net profit rose 48.02 percent year-on-year to Rs 1,022 crore in the April-June period, according to the company's exchange filing. That compares with the Rs 937-crore consensus estimate of analysts tracked by Bloomberg. Its revenue rose 15.90 percent over the last year to Rs 2,794 crore—in line with the Rs 2,788-crore estimate.

The company's operating profit increased 16.03 percent to Rs 1,843 crore. Its operating margin expanded 7 basis points over last year to 65.95 percent.

“Continued strength in our core operations resulted in 16 percent increase in both our consolidated operating revenue and Ebitda,” Adani Ports' Chief Financial Officer Deepak Maheshwari said in a media statement. “We are focused on allocating capital efficiently and improving the return on capital employed.”

In March, Adani Ports, however, said it expects revenue and operating profits to grow at a slower pace over the next three years. The growth, it had said, would be dragged by lower revenue from SEZ business.

Shares of Adani Ports fell as much as 2.9 percent after the earnings announcement compared with a 0.35 percent drop in the benchmark Nifty 50 Index.

Other Highlights

• Cargo volumes rose 18 percent to 57 million metric tonnes—the highest ever.
• Foreign exchange gain of Rs 3.4 crore versus a forex loss of Rs 383 crore.
• Other income rose 44 percent year-on-year to Rs 422 crore.