Q2 Results: Adani Ports’ Profit Beats Estimates On Higher Other Income
Net profit of Adani Ports rose 74 percent year-on-year to Rs 1,054 crore in second quarter.
Adani Ports And Special Economic Zone Ltd.’s profit beat estimates in the quarter ended September as its other income rose.
Net profit rose 74 percent year-on-year to Rs 1,054 crore in the second quarter, according to the company’s exchange filing. That compares with the Rs 937-crore consensus estimate of analysts tracked by Bloomberg. Its revenue rose 8.17 percent over last year to Rs 2,821 crore—in line with the Rs 2,788-crore estimate. Other income grew 61 percent to Rs 505.74 crore.
The company’s earnings before interest, tax, depreciation and amortisation jumped 5.15 percent year-on-year to Rs 1,791 crore. Its operating margin, however, contracted 183 basis points to 63.49 percent.
According to a research note by India Ratings & Research, APSEZ’s strong liquidity is driven by the cash-generative nature of its business, with the Mundra port accounting for around 66 percent of the volumes as of March 2019. The rating agency had last month affirmed APSEZ’s long-term issuer rating at ‘IND AA+’, giving it a ‘stable’ outlook.
APSEZ spent Rs 2,900 crore in capex in financial year 2018-19, expanding capacities across all major ports, the research note read. “The company’s cash flow from operations increased to about Rs 57 billion [Rs 5,700 crore] in FY19, aided by volume-led growth and decline in trade receivables from related parties.”
Shares of the largest private port developer and operator in the country rose 2.05 percent compared to a flat Nifty50 index today.