Adani Group’s Rs 6,000-crore Dhamra LNG project in Odisha. (Source: Adani Group’s official website)

Adani Ports Delivers 29% Profit Growth Aided By Forex Gains

Adani Ports & Special Economic Zone Ltd. posted a 29.1 percent profit growth in the January to March quarter, driven forex gains and a jump in cargo volumes.

Profit rose to Rs 1,164.1 crore from Rs 901.7 crore in the same quarter last year, according to its filing on the stock exchanges. The profit performance surpassed the Rs 928.5 crore consensus of analysts tracked by Bloomberg. The company booked a forex gain of Rs 304 crore compared to a gain of Rs 29.6 crore in the year-ago period.

Revenue increased 12 percent to Rs 2,231.5 crore. The strategy to diversify cargo mix and focus on high value cargo yielded positive results, Karan Adani, chief executive officer and whole time director of Adani Ports & SEZ said in the exchange filing.

Earnings before interest, taxes, depreciation and amortisation rose 34.7 percent to Rs 1,637.6 crore, while EBITDA margins expanded to 73.4 percent from 64 percent.

Our EBITDA margins have been improving year-on-year and this is likely to continue given our focus on operational efficiencies, technology and cost control.
Karan Adani, Chief Executive Officer And Whole Time Director, Adani Ports & SEZ

Volume Guidance

Consolidated cargo volumes increased 14 percent to 43 million metric tonnes in the three months ended March. The company handled 169 million metric tonnes of cargo in the financial year 2016-17, an increase of 11 percent over the previous year. The company expects to better that performance and deliver 12 to 14 percent volume growth this year.

Other Highlights

  • Company approved raising up to $1.5 billion via bonds, and Rs 5,000 crore via share sale.
  • Received entire Rs 3,500 crore from related parties. No outstanding related party loans, advances or deposits.

Adani Ports & SEZ shares closed 2.4 percent higher at Rs 339.6 apiece.