Adani Ports Q4 Results: Profit Jumps Fourfold But Misses Estimates

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Adani Ports And Special Economic Zone Ltd.’s quarterly profit jumped fourfold over the year earlier as its acquisition of Krishnapatnam port continues to drive volumes. Still, the earnings missed estimates.

Net profit of India’s largest port operator stood at Rs 1,287 crore in the three months ended March from Rs 334 crore a year ago, according to its exchange filing. That compares with the Rs 1,465-crore consensus forecast of analysts tracked by Bloomberg.

Its revenue rose 24% year-on-year to Rs 3,608 crore—against the estimated Rs 3,721 crore. Revenue of the ports business rose 30% over a year earlier to Rs 3,123 crore, the company said in the filing.

Adani Ports in October last year had acquired a controlling 75% stake in the all-weather, deep water port located on the east coast of India in Nellore district of Andhra Pradesh. It bought the remaining 25% stake in Krishnapatnam Port in April 2021.

Adani Ports’ cargo volumes in the reported quarter rose 27% over the year earlier, the filing said. Krishnapatnam port handled cargo amounting to 3 million metric tonnes in November and 3.5 MMT in December, it said. Krishnapatnam port handled 10 MMT cargo in the quarter ended March.

The cargo, according to the company, was higher than that handled by all the major ports in India, helped by 16% growth in container cargo, 9% growth in dry bulk cargo, and due to enhanced capacity and higher cargo in east coast. To be sure, all-India cargo volumes only rose 2% during the period.

Q4 Highlights (YoY)

  • Operating profit rose 39% to Rs 2,287 crore, compared with the Rs 2,376-crore forecast.

  • Operating margin expanded to 63.4% from 56.2% a year ago. Analysts had pegged it at 63.9%.

“FY21 has been a transformational year for APSEZ. Some of the key decisions we took this year have set the foundation for the coming decade,” Karan Adani, chief executive officer of Adani Ports, was quoted as saying in the filing. “Our market share increased 4% on a pan-India basis in the ports sector.”

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