Adani Ports Q2 Profit Beats Estimates, Margin Contracts

Adani Ports and Special Economic Zone Ltd.’s profit beat estimates in the quarter ended Sept. of the financial year 2017-18.

Net profit fell 7.5 percent over the year-ago period to Rs 992 crore as “Mundra port has come out of tax holiday period”, the company said in an exchange filing today. The tax incidence at Rs. 710 crore in the first half of FY18 was higher than Rs.143 crore from a year ago period, the filing. The bottom line, however, managed to beat the Bloomberg consensus estimate of Rs 835 crore.

Revenue rose more than 24.6 percent to Rs 2,710 crore. The consensus estimate of analysts tracked by Bloomberg stood at Rs 2,533 crore.

Earnings before interest, tax, depreciation and amortisation rose 15.8 percent to Rs 1,784.5 crore as compared to the same quarter last year. The operating margin, however, contracted to 65.9 percent from 70.9 percent in that period.

Adani Ports’ board has approved raising up to Rs 3,000 crore by selling debentures, the company said in a separate exchange filing. It also gave a go-ahead to a Rs 500 debenture buyback.

Shares of the company fell as much as 3.33 percent to Rs 417.6 apiece after the results were announced.