Adani Ports’ ‘SHANTI SAGAR 17’. (Source: Adani Ports Website) 

Q2 Results: Falling Rupee Hits Adani Ports’ Profit, Misses Estimates

Adani Ports and Special Economic Zone Ltd.’s profit missed estimates after it declined for the fourth straight quarter, in part due to the depreciating rupee.

The private multi-port operator’s net profit fell 39 percent on a yearly basis to Rs 605 crore this quarter. That fell short of the analysts’ consensus estimate of Rs 767 crore compiled by BloombergQuint.

The company’s revenue for the quarter ended September fell 3.62 percent year-on-year to Rs 2,608 crore, above the analysts’ estimate of Rs 2,571 crore.

The company’s earnings before interest, tax, depreciation and amortisation—excluding foreign exchange losses due to the depreciating rupee—fell 8.54 percent to Rs 1,703 crore. Operating margin, excluding foreign exchange losses, shrank 350 basis points from the year-ago period to 65.3 percent.

The rupee has fallen 13 percent year-to-date, in response to higher oil prices and foreign portfolio outflows. Adani Ports reported a mark-to-market loss of Rs 953 crore in the first half of the year ended March 2019, compared with a loss of 47 crore on foreign currency loans in the year-ago period, the filing said.

The company’s cargo volumes rose 22 percent to a record 100 million metric tonnes in the half year, the company said in a statement.

Amid fears of trade war and its impact on Indian cargo, we’ve been able to achieve record cargo throughput of 100 MMT in H1FY19. Our string of ports across the coastline of India, strategy to diversify cargo and ensure that all our ports handle all types of cargo has helped us to achieve this milestone. 
Karan Adani, Chief Executive Officer and Whole-Time Director of APSEZ.

Other Highlights:

  • Container volumes grew 16 percent to 1.42 million metric tonnes, year on year.
  • Cargo volumes up 22 percent to 52 million metric tonnes, year on year.