Adani Ports Q1 results: Net profit surges 83% to Rs 2,115 crore

Adani Ports and Special Economic Zone on Tuesday announced strong first-quarter results, with net profit surging 82.6 per cent, supported by a notable rise in cargo volumes and enhanced margins due to increased tariffs.

The company reported a consolidated net profit of Rs 2,115 crore in the April-June period, compared to Rs 1,158 crore in the corresponding period last year.

Its revenue from operations also witnessed a significant upswing of 23.5 per cent, reaching Rs 6,248 crore, fueled by a substantial 12 per cent expansion in cargo volumes.

Operating the largest container handling port in India, Mundra in Gujarat, the company maintained its full-year revenue projection at Rs 24,000-25,000 crore, suggesting a growth of 15-20 per cent year-on-year.

The company attributed its impressive performance to a remarkable 150 basis points increase in EBITDA margins at its ports business, reaching 72 per cent. This margin expansion was primarily attributed to tariff hikes.

During the latest quarter, cargo volume surpassed 100 million metric tonnes (MMT), setting a promising trajectory towards an anticipated full-year volume of 370-390 MMT.

Karan Adani, CEO of Adani Ports and son of billionaire Gautam Adani, the head of the Adani group, shared this optimistic outlook.

The market response was positive, with Adani Ports' shares closing nearly 1% higher after the announcement, reversing from an initial 3% decline during the session.

While the stock has rebounded by approximately 65 per cent from its multi-year lows following the Hindenburg report in January, it still remains down 5.7 per cent for the year.