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Shares of APSEZ lost 1.39% to `339.85 on Wednesday on BSE, while the benchmark Sensex index lost 0.04% to close at 29,559.18 points.
Shares of APSEZ lost 1.39% to `339.85 on Wednesday on BSE, while the benchmark Sensex index lost 0.04% to close at 29,559.18 points.

Adani Ports Q3 profit rises 14% to Rs512 crore

Net profit increased to `512 crore from `450 crore in the year-ago period

Mumbai: Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest port developer, posted a 14% increase in consolidated net profit for the three months ended 31 December.

Net profit increased to 512 crore from 450 crore in the year-ago period, the company said in statement on Wednesday. Net sales increased by 49% to 1,533.68 crore from 1,026.4 crore a year ago.

The company handled 39 million tonnes (mt) of cargo in the December quarter, an annual increase of 33%. Adani ports handled 20 mt of cargo at its Mundra port in the reporting quarter, continuing its leadership as the single largest commercial port in India, the company said.

The results include those of the Dhamra Port Company Ltd, which APSEZ acquired in June, the firm said.

“We are pleased that our performance across all ports continues to be robust therefore reflecting the strength of our pan India strategy," said Gautam Adani, chairman, Adani Group.

Shares of APSEZ lost 1.39% to 339.85 on Wednesday on BSE, while the benchmark Sensex index lost 0.04% to close at 29,559.18 points.

The increase in profit can be primarily attributed to the increase in other income, analysts said. “The results are really weak operationally and the net profit increase is only because of a higher other income and a very low tax expense," an analyst with a foreign brokerage said, requesting anonymity.

Consolidated earnings before interest, tax, depreciation and amortization (Ebitda) of 960 crore was below the estimated 990 crore, according to a note by Adhidev Chattopadhyay, research analyst, institutional equities, at HDFC Securities.

“Although standalone Ebitda margin of 68% for Mundra remained strong, lower operating margins in other ports dragged down margins to around 62% (in line with estimates)," the note said.

For the reporting quarter, Adani Ports reported other income of 154.8 crore. The tax expense was at 1.13 crore for the same period. “We have had another record quarter and nine months performance on all fronts of cargo, revenue and Ebitda growth and we are further enhancing our focus on sales and operational excellence to maintain our growth momentum," said Sudipta Bhattacharya, chief executive officer of APSEZ.

The firm has in recent months announced plans to increase its cargo-handling capacities.

In August, the Adani Group and Gujarat State Petroleum Corp. said they will set up a 4,500 crore liquefied natural gas (LNG) import terminal at Mundra special economic zone in Gujarat by December 2016.

“With Adani Ports recently having received go ahead to develop the SEZ at Mundra, we expect Mundra volumes to benefit over the long term as more companies set up operations at the SEZ along with revenues from land sales," HDFC Securities said.

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