Shares of Adani Ports and Special Economic Zones Ltd. declined even in second-quarter estimates, helped by strong volume growth.
Net profit of India’s largest private port operator rose 65% year-on-year to Rs 1,738 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 1,311 crore consensus estimate of analysts tracked by Bloomberg. The company’s cargo volume increased 15% year-on-year to 86.6 million metric tons in the quarter.
The depreciating rupee is dragging down the profits of Adani Group companies. Foreign exchange loss during the quarter stood at Rs 369.7 crore, compared to a gain of Rs 53.21 crore in the comparable period.
Adani Port Highlights Q2 FY23 (YoY)
Revenue rose 33% to Rs 5,211 crore, against estimates of Rs 4670.6 crore
Ebitda rose 31% to Rs 3,260 crore, excluding forex MTM losses/gains. It compares with a forecast of Rs 2,699.3 crore.
Kotak Institutional Equity sees healthy 13% YoY growth in Adani Ports and SEZs. The volume and continued increase in realization helped the company grow its Ebitda port by 25% YoY, he said.
Shares of Adani Ports fell 1.28% to Rs 831 apiece as of 10:04 am, while the benchmark Nifty 50 shed 0.15% on the NSE. Total trading volume was 3.3 times the 30-day average, according to Bloomberg data.
Of the 24 analysts tracking the company, 22 maintain a ‘buy’ rating and two suggest a ‘hold’ rating. The 12-month consensus price target implies an upside of 12.4%.
This is what brokerages make of quarterly results