Adani Ports Q1 profit surges 47% driven by robust cargo volumes

Adani Ports Q1 earnings: Adani Group-owned Adani Ports and Special Economic Zone has reported 47 per cent increase in quarterly profit, attributed to vigorous commercial activity in the world's fifth-largest economy, which boosted cargo volumes.

Following the announcement, shares of the Adani Group company rose by 2.2 per cent to an intraday high of Rs 1,604.95 apiece while the broader benchmark Nifty 50 surged 0.5 per cent to an all-time high of 25,078.30

As India's leading private port operator by volume, Adani Ports revealed that its consolidated net profit surged to Rs 3,113 crore for the fiscal first quarter ending in June, up from Rs 2,115 crore in the same period last year. The company also reported an 11 per cent rise in revenue, reaching Rs 6,956 crore, excluding the Rs 603 crore gained from divesting its Ennore terminal in Tamil Nadu.

The strong performance of port operators like Adani Ports has been underpinned by consistent cargo movement to and from India, driven by robust domestic demand and active commercial operations in Asia's third-largest economy.

The company, India's largest private port operator, experienced a 7.5 per cent increase in cargo volumes, reaching 109 million metric tons (MMT) despite losing 6 MMT in April and May due to the shutdown of its Gangavaram port in Andhra Pradesh. Adani Ports declared a force majeure at Gangavaram after employee agitation disrupted operations. Nevertheless, the company's Mundra port, the largest container handling port in India, achieved a record 17.6 MMT in May.

The port major reported an 82.6 per cent increase in net profit, amounting to Rs 2,114 crore, with revenue rising by 23.5 per cent year-on-year to Rs 6,248 crore. Adani Ports also recorded its highest-ever quarterly cargo volumes at 101.4 MMT, driven by a 12 per cent rise in cargo volumes. The company's EBITDA margin for the ports business stood at 72 per cent, primarily due to increased tariffs.

Adani Ports, part of billionaire Gautam Adani's expansive ports-to-power conglomerate, operates 13 ports and terminals across India, including Mundra in Gujarat, the country's largest container handling port. Mundra port set a new record in May by handling 17.6 million metric tons of cargo, the highest monthly volume for any Indian port.

In contrast, last month, smaller competitor JSW Infrastructure reported a decline in quarterly profit due to increased expenses.