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Home >Companies >Company Results >Adani Ports’ net profit falls 26% in June quarter

Adani Ports and Special Economic Zone (APSEZ), the largest private port owner and operator in India, on Tuesday reported a net profit of 757.83 crore for the June quarter, compared to 1,028.69 crore reported in the year ago. The covid 19-led national lockdown and lower cargo volume during the period led to a 26% fall in profit.

Despite the fall in overall cargo volume, APSEZ’s flagship Mundra port in Gujarat was the largest container-handling port in India. It handled 968,000 TEUs (twenty-foot equivalent units) in Q1 FY21, surpassing those of state-owned Jawaharlal Nehru Port Trust in Mumbai, where container volumes were at 850,000 TEUs.

Adani Port’s operating revenue in Q1 fell nearly 18% from 2,794 crore in Q1FY20 to 2,292 crore, while operating costs remained flat. “Due to the all-India lockdown from the last week of March, cargo throughput witnessed a decline of 27%," the company said. “In spite of the decline in cargo throughput, APSEZ was able to maintain Port Ebidta (earnings before interest, tax, depreciation, amortisation) margin at 70% due to its strategy of diversifying cargo mix, ability to maintain realization and reduce operating costs. The shift from road to rail and increase in services enabled Adani Logistics to achieve a revenue of 200 crore in Q1 FY21 versus 181 crore in Q1 FY20, a growth of 10% y-o-y (year-on-year)."

The company said it has witnessed a steady increase in cargo throughput from July, when it handled volume of 18.30 million tonnes, growing 6% y-o-y, and 31% over June. “This trend gives us confidence that worst is behind us and going forward cargo volume in FY21 is expected to stabilize."

The company said it has received approval from the Competition Commission of India (CCI) for its acquisition of the Krishnapatnam Port and expects the deal to be completed in the current quarter. Its other acquisition of bankrupt Dighi Port is awaiting approval from the Maharashtra Maritime Board and the company expects to close the transaction by September-end, after which it will invest 100 crore to restart operations at the port.

“In the first quarter of FY21, we were able to perform operationally at par with pre-covid levels. During this period, we relooked at fundamentals of port operations and realigned costs, thus maintaining Port Ebidta margin of 70%. With the worst behind us, we have emerged operationally stronger and resilient to externalities," said Karan Adani, chief executive and whole-time director, APSEZ.

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