Adani Ports and Special Economic Zone (Adani Ports) is expected to report a 25.8 percent year-on-year growth in sales at Rs 4,445.35 crore for the quarter that ended September. Net profit is likely to jump 47.4 percent to Rs 1,403.1 crore in the same period.

However, despite strong growth in sales, volumes could witness some moderation.

“Volumes remained below the 30mnt (million tonne) mark for the second consecutive month. 2QFY23 volumes at 86.6mnt fell q-o-q (quarter-on-quarter) vs 1QFY23 volumes at around 91mnt likely on account of lower thermal coal imports,” Nomura said in a note.

Volumes at the country’s 12 major ports declined around 1.4 percent month-on-month in September led by a 9.3 percent decline in coal volumes but rose 15 percent on an annualised basis to 61.7 mt. In comparison, Adani Ports’ September volumes came in at 26.1 mt, down 10.9 percent month-on-month, the Nomura report highlighted.

The brokerage sees an operating margin of 47.8 percent in the September quarter against 64.0 percent in the corresponding quarter last year and 38.9 percent in the previous quarter.

According to Jefferies, the power and ports sector will see 15-25 percent earnings growth. The brokerage firm tracks NTPC, Power Grid Corporation of India, Adani Ports, Container Corporation of India, and Tata Power.

Motilal Oswal Financial Services said logistics activity picked up in August 2022 with volumes handled at major ports rising 8 percent year-on-year to 62.6 mt.

Adani Ports has a pan-India presence in 10 locations (nine are operational) with its flagship being Mundra Port, India’s largest commercial port, on the Gulf of Kutch.
Investors will be watching out for any announcement regarding capital expenditure. The management has announced capex to the tune of about Rs 24,000 crore over FY21-25 of which Rs 2,000 crore was incurred up to FY22. The balance capex would be incurred over the next three years.
Source: MoneyControl