Adani Ports slips 6% post Q1 results

The stock slipped 6% to Rs 375 on the BSE after the company reported its consolidated net profit at Rs 6.97 billion in June quarter, due to mark to market loss of Rs 3.83 billion during the quarter.

SI Reporter  |  Mumbai 

Paradip is a bulk cargo port that mainly handles thermal coal used by power plants on the east coast Photo: iStock
Paradip is a bulk cargo port that mainly handles thermal coal used by power plants on the east coast Photo: iStock

Shares of Adani Ports and Special Economic Zone have slipped by 6% to Rs 375 per share on the BSE in intra-day trade after the company reported its consolidated net profit at Rs 6.97 billion in June quarter (Q1FY19), due to provision of mark to market loss of Rs 3.83 billion during the quarter. It had a profit of Rs 7.6 billion in the same quarter during the last fiscal.

The consolidated revenue during the quarter under stood at Rs 24.11 billion against Rs 27.45 billion in the corresponding period of previous fiscal. There was no SEZ port led development income in Q1FY19 compared to Rs 6.61 billion booked in Q1FY18, Adani Ports said in a statement.

The cargo volume in Q1FY19 grew by 9% year on year, led by crude which grew by 65% and containers which grew by 16%.

Going ahead, analysts at IIFL Wealth Management expected cargo volume to grow at around 10% during FY19. Also, the company’s cargo diversification strategy is playing out well with strong cargo growth being witnessed across segments like crude and container segments, it added.

“Going forward, we expect its focus on non-coal segment to drive the topline growth over next couple of years. Better cargo mix and operational efficiency is likely to bring better margins,” the brokerage firm said in result update.

Adani Ports has underperformed the market by falling 9% in past one year, as compared to 17% rise in the S&P BSE Sensex.
First Published: Tue, August 07 2018. 11:13 IST