Moneycontrol Bureau
The ports-to-energy Adani Enterprises is likely to post over 15 percent year-on-year decline in its March quarter profit to Rs 262.6 crore ,as its power segment continues to post losses due to the ongoing fuel crisis along with infrastructure bottlenecks. Total income is expected to go up 6.5 percent YoY to Rs 11330 crore, according to CNBC-TV18.
EBITDA (earnings before interest, tax, depreciation and amortization) is estimated to be up 66.8 percent YoY to Rs 1811 crore along with a 580 basis points jump in operation margins to 16 percent. Factors that will impact the company’s Q4 numbers.
*Operational performance expected to be strong this quarter driven by higher profit in Ports.
*Expect coal trading volumes to return closer to earlier run-rate of 9-10 MT versus 16 MT YoY.
*While bottomline will be impacted due to losses the company is making in Adani Power --- better than expected performance of Adani Ports will lower losses on a YoY basis.
Going forward, Adani will be able to pass expensive fuel costs to state electricity boards to which it supplies power, after the sector regulator allowed it to do so. This initiative will help the firm to bring down losses in power segment.
The company has already embarked on an expansion plan due to which its balanced sheet is stretched. The management is likely to announce plans to raise funds and pare debt post Q4 numbers announcement. Read This: Buy Exide Industries, Adani Enterprises: Sukhani
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