Adani Ports & SEZ Ltd (Adani Ports) is expected to report a year-on-year (YoY) growth of 20 percent in its consolidated profit after tax (PAT) for the first quarter ended June 2022 when it will declare its results on August 8. The consolidated revenues for the quarter however, are likely to remain flat.
On a sequential basis, the performance of the company is likely to see a healthy growth with net profit seen rising 51 percent and revenues 15 percent.
The Gautam Adani-owned, one of India’s largest port developers and operators is likely to report a consolidated net profit of Rs 1,553 crore on revenues of Rs 4,434 crore, according to an average of estimates of four brokerages polled by Moneycontrol.
The growth is aided by an increase in volumes across its existing ports and also because of consolidation of port volumes of Gangavaram port. The coal volumes increased strongly during the quarter while the crude and container cargo also witnessed healthy traction.
The company had recorded a consolidated PAT of Rs 1,307 crore during the corresponding period last year when it had achieved consolidated revenues of Rs 4,557 crore.
Its consolidated PAT during the previous quarter stood at Rs 1,024 crore on revenues of Rs 3,845 crore.
Cargo volume handled at Adani Ports in June 2022 increased 5 percent month-on-month and 12 percent on-year to 31.88 MT (million tonnes). Total volumes handled by the company during the quarter stood at 90.89 MT, a sequential growth of 16 percent and a growth of 8 percent on-year.
“We model 20 percent QoQ improvement in revenues on improved volumes across existing ports as well as consolidation of Gangavaram port volumes,” said a report from Kotak Institutional Equities.
The brokerage expects an EBITDA (earnings before interest, tax, depreciation and amortization) of Rs 2,855 crore at a sequential growth of 20 percent and a YoY growth of 9 percent.
The EBITDA margins are likely to remain stable at ~62 percent sequentially while compared to the same period last year, the EBITDA margins are seen improving by 450 bps.
The key thing to look for is the recovery in global trade and volume ramp in recently acquired ports.
Adani Ports closed Rs 3.0 higher at Rs 810.25 on August 5 on The National Stock Exchange. The stock has gained 17 percent during the past one year and is trading higher by ~20 percent over the past one month.
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