Adani Ports to exit Myanmar investment; Q2 profit falls 31%

Adani Ports, India's largest integrated logistics player, today reported a 30.51% decline in its consolidated net profit to ₹968.34 crore for September quarter as against ₹1,393.69 crore in the same period a year earlier. The company further announced its exit Myanmar investment.

Adani Ports and Special Economic Zone Ltd (APSEZ) in a BSE filing said its total consolidated income increased to ₹4,066.78 crore for the second quarter, against ₹3,423.16 crore in the year-ago period.

The company further said it would exit the firm's investment in Myanmar by June next year, news agency Reuters reported. 

The company had in June said it would abandon the Myanmar container terminal project and write down the investment if it was found to be in violation of sanctions imposed by the United States.

"The Company is in discussion with its US based counsels to ensure that the Company is in compliance with the OFAC [Office of Foreign Assets Control] sanctions programs. In a scenario wherein Myanmar is classified as a sanctioned country under the OFAC or if OFAC opines that we are in violation of the current sanctions, the company has plans to abandon the project and will write-down its investments in the project in full," Adani Ports said in a filing on Wednesday.

The company had said the write down will not materially affect the balance sheet as it is equivalent to about 1.3% of the total assets of the company.