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Adani Ports Q3 Results: Profit Drops On Forex Losses, Misses Estimates

India's largest private port operator's consolidated net profit fell 16% to Rs 1,315.5 crore in the quarter ended December.

<div class="paragraphs"><p>Adani Ports. (source: company website)</p></div>
Adani Ports. (source: company website)

Adani Ports and Special Economic Zone Ltd.'s third-quarter profit fell missing analysts' estimates due to foreign exchange losses.

India's largest private port operator's consolidated net profit declined 16% to Rs 1,315.5 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 1,501.6 crore consensus estimate of analysts tracked by Bloomberg.

The depreciation in the rupee dragged down the profit of the Adani Group company. The foreign exchange loss stood at Rs 315 crore compared with Rs 13 crore a year earlier.

Adani Ports Q3 FY23 Highlights (YoY):

  • Revenue rose 18% to Rs 4,786.2 crore, compared with the forecast of Rs 4,811.7 crore.

  • Ebitda grew 4% to Rs 2,707.5 crore, against the estimated Rs 2,927.8 crore.

  • Ebitda margin stood at 56.6%, compared with 63.6% a year earlier and an estimate of 60.8%.

The company's cargo volume rose 1% year-on-year to 75.43 million tonnes, and the container volume rose 2% to 2.08 million TEUs in the quarter.

The company guided for revenue of Rs 19,200–19,800 crore, Ebitda of Rs 12,200–12,600 crore, and net debt to Ebitda in a range of 3-3.5x in the current financial year.

It is targeting FY24 Ebitda of Rs 14,500–15,000 crore.

"Besides an estimated capital expenditure of Rs 4,000–4,500 crore, we are considering total loan repayment and prepayment of around Rs 5,000 crore, which will significantly improve our net debt to Ebitda ratio and bring it closer to 2.5x by March 24," Karan Adani, chief executive officer, said in a statement.

Shares of Adani Ports traded 4.1% higher against a 0.2% fall in the benchmark Nifty 50 at 01.33 p.m.

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.