Adani Ports' Results in Higher Profit Than Estimates

BY Tiya Chatterji 20.Nov.2019

Adani Ports and Special Economic Zone Limited is one of India’s largest port developers and has reported record breaking cargo volumes in the first half of the current financial year, ending September 30th, 2019.

The fastest growing port within the group was Dhamra, on the eastern coast, which registered a growth rate of 46%. Kattupalli, to the south, achieved a 17% increase, while the western ports of Hazira and Mundra increased cargo flows by 7% and 5% respectively. The company’s network of ports and Net profit rose 74 percent year-on-year to Rs 1,054 crore in the second quarter, according to the company’s exchange filing. Its revenue rose 8.17 percent over last year to Rs 2,821 crore—in line with the Rs 2,788-crore estimate. Other income grew 61 percent to Rs 505.74 crore.

There were a number of key developments over the six month period, including the establishment of a new container terminal with a capacity of 500,000 teu a year at Mundra, and the commencement of LNG handling operations at the same port at a new facility, with a 3.2 million tonnes annual capacity, this October. Adani’s Kattupalli port now has a new liquid bulk terminal, while Hazira port benefits from new tank storage units with a total capacity of 24,000 KL.

According to a research note by India Ratings & Research, APSEZ’s strong liquidity is driven by the cash-generative nature of its business, with the Mundra port accounting for around 66 percent of the volumes as of March 2019. The rating agency had last month affirmed APSEZ’s long-term issuer rating at ‘IND AA+’, giving it a ‘stable’ outlook.