Adani Ports, a leading player in the maritime industry, unveiled its impressive Q3 financial results on February 1, showcasing substantial growth in both net profit and revenue for the quarter ending December 2023.
In a remarkable feat, the consolidated net profit of Adani Ports witnessed a remarkable 65 percent YoY surge, reaching Rs 2,210 crore. Simultaneously, the company’s revenue experienced a substantial increase of 47 percent YoY, culminating at Rs 7,426 crore. This remarkable financial performance was primarily fueled by a notable uptick in cargo volumes during the quarter.
The surge in operating profit is attributed to heightened efficiencies and optimal capacity utilization. Moreover, the robust revenue growth is closely tied to the increased cargo volumes handled by Adani Ports.
Market expectations were exceeded, with the company’s consolidated net profit surpassing predictions by reaching Rs 2,210 crore, a 4 percent increase, while revenue exceeded forecasts by 7 percent, landing at Rs 7,426 crore. Projections from four leading brokerages were taken into account for these estimates, as reported by Moneycontrol.
Adani Ports also witnessed a substantial increase in EBITDA, recording a 33 percent YoY jump to Rs 4,292 crore. The company’s EBITDA margin expanded impressively from 56 percent in the year-ago quarter to 62 percent.
Operationally, Adani Ports achieved its highest-ever quarterly cargo volume, reaching 108.6 MMT. Mundra, the flagship port, set a record for the highest-ever monthly volume at any Indian port on October 23. The company also achieved a significant milestone, handling 300 MMT in just 266 days compared to 329 days in FY23. The overall cargo volume for the nine months ending December surged by 23 percent YoY to 311 MMT.
Adani Ports, with a substantial 24 percent market share in the cargo handling sector, has expanded its portfolio from two ports in FY11 to an impressive 14 ports across India. Analysts at Motilal Oswal anticipate the company to sustain its robust positioning in the short term.
Ashwani Gupta, CEO of Adani Ports, expressed satisfaction with the outstanding performance, stating, “Adani Ports recorded its strongest ever Q3 and 9M performance with the highest ever revenue, EBITDA, and cargo volumes, and is on course to overachieve its full-year guidance provided at the start of the year.”
Additionally, the conglomerate successfully completed a bond buy-back of $325 million during the 9MFY24 period, leading to a noteworthy improvement in net debt to EBITDA, reducing from 3.1x in FY23 to 2.5x.
As of 1:22 pm, Adani Ports shares were trading 1.6 percent higher at Rs 1,227.25 on the National Stock Exchange (NSE). The stock has demonstrated exceptional performance, rallying over 147 percent in the past year, outpacing the benchmark Nifty 50.
Disclaimer: The opinions and investment suggestions presented by financial experts on Chennaiprint.in are their own and do not necessarily reflect the views of the website or its management. It is advisable for users to consult certified experts before making any investment decisions.