Adani Ports' net profit jumps 77% to Rs 1,342 crore in June quarter

Topics Adani Ports | Q1 results | APSEZ

As part of its social outreach programme, APSEZ said it decided to vaccinate its employees in April 2021
Adani Ports and Special Economic Zone (APSEZ) on Tuesday reported a 77.04 per cent jump in consolidated net profit to Rs 1,341.69 crore for the first quarter of the current financial year. The country's largest integrated logistics player had clocked a consolidated net profit of Rs 757.83 crore in the corresponding period a year ago, according to a regulatory filing.

Its total income during the latest June quarter rose to Rs 4,938.43 crore, against Rs 2,749.46 crore in the year-ago period. The company's total expenses during the quarter under review increased to Rs 3,464.88 crore, from Rs 1,805.24 crore a year ago.

"Our strategy of establishing a network of world-class ports to balance cargo across the east and west coasts has been tracking precisely as per plan, thereby continuing to de-risk our growth as well as lay the foundation of a broader logistics platform.

"This has resulted into APSEZ accelerating its market share gain," Karan Adani, chief executive officer and whole-time director of APSEZ, said in a statement.

Adani further said that therefore, the company has raised its target cargo volumes to 350-360 MMT (million metric tonnes), which translates into a year-on-year growth of about 45 per cent.

"APSEZ also became the first Indian infrastructure company to have raised a dual-tranche of 10.5-year and 20-year unsecured bonds," he said adding that the company's goal of becoming the first port firm to be carbon neutral by 2025 is very well on track.

Its board has formed a committee of independent directors to evaluate an acquisition for consolidating Gangavaram Port Ltd (GPL) with APSEZ Group, including merger, post completion of 10.40 per cent stake sale by the Government of Andhra Pradesh (GoAP) in GPL, the company said.

In notes to April-June quarter earnings, APSEZ said the company acquired balance 25 per cent stake in Krishnapatnam port for Rs 2,800 crore, making it a 100 per cent subsidiary of APSEZ.

It said that as a second international foray, it will develop a container terminal at Colombo Port with a capacity of 3.5 million twenty-foot equivalent unit (TEUs). "Construction is expected to start in December 2021."

The firm also said the consideration for 58.1 per cent stake from DVS Raju and Family, agreed at Rs 120 per share, and process for acquisition of balance 10.4 per cent from GoAP are at an advance stage. In the statement, APSEZ also said that the merger scheme for consolidating rail track assets (by acquiring SRCPL and demerging Mundra rail assets) has been filed.

According to the company, cargo volume increased due to growth in all types of cargo dry bulk grew 104 per cent, container 69 per cent, and liquid cargo (including crude) 57 per cent. As part of its social outreach programme, APSEZ said it decided to vaccinate its employees in April 2021.

The company, under the corporate quota, provided free vaccination to all its employees. Its 97 per cent employees are vaccinated, it said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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