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Informist, Thursday, Aug 1, 2024

 

--Adani Ports: One-time cost of 1.45 bln rupees in Apr-Jun
--Adani Ports Apr-Jun consol revenue 69.56 bln rupees vs 62.48 bln
--Adani Ports Apr-Jun consol net profit 31.13 bln rupees vs 21.15 bln
--Adani Ports Apr-Jun consol revenue 69.56 bln rupees
--Analysts saw Adani Ports Apr-Jun consol net profit 23.33 bln rupees
--Adani Ports Apr-Jun consol net profit 31.13 bln rupees

 

By Sunil Raghu

 

AHMEDABAD – Higher cargo volumes, primarily containers, and liquid and gas, helped Adani Ports and Special Economic Zone Ltd overcome cargo loss due to a workers strike at Gangavaram port and post a 47.20% on-year jump in consolidated net profit to 31.13 bln rupees in the June quarter. Its consolidated net profit was at 21.15 bln rupees in Apr-Jun a year ago. The net profit was also way above the Street estimate of 23.3 bln rupees. Sequentially, the net profit was higher by 52.62%.

 

The consolidated revenue from operations for the largest private port player rose 11.34% on year to 69.56 bln rupees in Apr-Jun. The revenue from operations was lower than the consensus estimate of 70.3 bln rupees. It was 0.87% higher than a quarter ago.

 

Of the total revenue, the company earned 69.39 bln rupees from port and special economic zone activities, and the remaining from the logistics and transportation business. During the quarter, the company's other income rose 28.91% on year 4.95 bln rupees.

 

The higher-than-expected net profit in the June quarter saw the shares of Adani Ports rising. At 1338 IST, the stock traded 1.4% higher at 1,592.55 rupees on the National Stock Exchange.

 

The total expenditure, including finance costs, rose 4.27% on year to 42.39 bln rupees in Apr-Jun. The finance costs fell 17.2% to 5.15 bln rupees in Apr-Jun from 6.22 bln rupees a year ago. The tax expense of the company rose 30.71% on year to 4.85 bln rupees, from 3.71 bln rupees in Apr-Jun a year ago.

 

The company also incurred a one-time cost during Apr-Jun quarter, where it spent 1.45 bln rupees on employees of one of the subsidiary companies as one-time settlement. The company did not share any more details in its earnings filing.

 

The company said that its earnings before interest, tax, depreciation, and amortisation, or EBITDA, excluding forex, rose 29% on year to 48.48 bln rupees. "Domestic ports contributed 39.90 bln rupees to EBITDA and logistics contribution was at 1.44 bln rupees," the company said in its filing.

 

OPERATIONAL UPDATES

Adani Ports, which has a portfolio of 15 ports, already announced that its port volumes during Apr-Jun were at 109 mln tn, up 7.5% on year. The growth in cargo was primarily driven by containers, which rose 18% on year and liquids and gas, which rose 11% on year. Within logistics segment, quarterly rail volumes were at 156,590 twenty feet equivalent units, up 19% on year, and general purpose wagon investment scheme volumes at 5.56 mln tn, up 28% on year. Container volume handled at multi-modal logistics parks rose 27% on year to 103,784 containers.

 

"We had a temporary disruption leading to a loss of 5.7 mln tn at Gangavaram port, which is now fully restored," the company said in its statement accompanying Apr-Jun earnings filing.

 

Adani Ports had, while announcing its 2023-24 (Apr-Mar) earnings, had said that it expected to handle 460-480 mln tn of cargo in 2024-25 and earn a revenue of 290-310 bln rupees, with EBITDA of 170-180 bln rupees.

 

BUSINESS HIGHLIGHTS

During the quarter, the company signed a 30-year concession agreement with Tanzania Ports Authority to operate and manage a container terminal at Dar es Salaam Port, with four berths and annual cargo handling capacity of 1 mln containers. It managed 820,000 containers in 2023.

 

Adani Ports also received a letter of intent to develop, operate and maintain Berth Number 13 at Deendayal Port at Kandla in Gujarat. The letter of intent is for 30-year concession period. It also received letter of intent for 5-year operations and management of container facility at Netaji Subhas Dock at Syama Prasad Mookerjee Port at Kolkata. The dock handled 630,000 containers in 2023-24 (Apr-Mar).

 

The company also increased its warehousing capacity to 2.9 mln sq ft, from 2.4 mln sq ft at the end of Mar 31. It has also deployed a tug each in Mexico and Sri Lanka.

 

The company proposes to spend 105-115 bln rupees in capital expenditure in 2024-25. Of the total capex, it proposes to spend 73 bln rupees on ports, 23 bln rupees on logistics business, 4 bln rupees on marine services and 15 bln rupees on decarbonisation activity. Within logistics, Adani Ports plans to spend 16 bln rupees on grain silos, 2.5 bln rupees each on warehousing and logistics park and 1 bln rupees on train business.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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