WASHINGTON: Adani Ports and Special Economic Zone (APSEZ) has surged 9% to Rs 312 on BSE after the company reported a better-than-expected 61% year on year (YoY) jump in its consolidated net profit at Rs 1,091 crore for the quarter ended September 30, 2016 (Q2FY17), on back of strong volume growth. Adani Group Company had profit of Rs 836 crore in the same quarter last fiscal.
Consolidated cargo volumes on YoY basis increased by 17 % from 36 MMT in Q2FY16 to 43 MMT in Q2FY17. Container volumes increased by 30% on YoY basis. Total income from operations rose 20.7% to Rs 2,183 crore on YoY basis. Analysts on an average had expected profit of Rs 696 crore on revenues of Rs 1,772 crore.
EBITDA (earnings before interest, taxes, depreciation, and amortization) margin expands by 100 basis points to 66% in Q2FY17 from 65% in Q2FY16. On the balance sheet front, we have reduced our related party loans by Rs 1,035 crore in H1FY17 and target to reduce it entirely by the financial year end, APSEZ said in a release. “Healthy growth in cargo volumes, operational efficiencies and our efforts to change the mix of bulk cargo beyond coal has enabled us to report all-round growth in our financial numbers,” said Karan Adani, chief executive officer of APSEZ.
“With Make in India scheme of Govt of India likely to take off in the near future, our SEZ monetization is expected to gain momentum. Implementation of GST will help our Logistic arm to expand further. With our port to Hinterland connectivity further improving we would be truly a fully integrated player providing end to end service to our customers. This will result in higher volume and financial growth,” added Karan Adani.
