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Adani Ports Q2 Preview: Strong volumes to drive revenue, EBITDA

and Special Economic Zone is likely to report strong double-digit growth in revenue for the quarter ended September on the back of strong cargo volumes and robust performance of special economic zone units.

The Adani Group company will release its earnings on Tuesday. “The consolidation of Gangavaram port volumes from 2Q yields a higher 26% YoY growth in volumes,” Kotak Institutional Equities said in its report.

Driven by higher realisations and boost from SEZ operations, the brokerage expects consolidated revenue to rise 40% on year.

Analysts see the company posting revenue in the range of Rs 4,141 to Rs 5,052 crore, compared with Rs 3,532 crore a year ago.

For each month of the last quarter, Adani Ports reported double-digit growth in cargo volumes. Post the June quarter earnings, Adani Ports had expressed confidence of achieving 350-360 million tonne of cargo volume in FY23. Investors would want to see if the company retains this guidance.

Analysts expect a sharp 16-63% YoY growth in earnings before interest, taxes, depreciation and amortization (EBITDA), or operating profit on the back of higher realisations. However, some analysts see operating margin dipping sequentially.

“We model a marginal 100 bps QoQ reduction in EBITDA margin to account for higher SEZ-linked income,” Kotak Equities said.

Adani Ports had guided for EBITDA of Rs 12,200-12,600 crore for FY23, and one needs to see if the company retains this projection as well.

The company’s consolidated net profit is seen in the range of Rs 1,018 to Rs 1,678 crore, higher than Rs 952 crore a year ago.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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