Adani Group shares trade higher ahead of Q3 results

Shares of Adani Group companies – Adani Ports and Special Economic Zone (SEZ), Adani Transmission and Adani Enterprises – were trading higher by up to 5% ahead of October-December quarter (Q3FY18).

Adani Transmission, the largest gainer among the pack, was up 5% to Rs 235 on BSE in intra-day trade on Wednesday. The company engaged in electric utilities business is schedule to announce its Q3FY18 results today.

Since October 27, 2017, post Q2FY18 results, Adani Transmission had underperformed the market by falling 3% as compared to 5% rise in the S&P BSE Sensex till Tuesday.

The company’s consolidated net profit in Q2FY18 declined by 33% to Rs 670 million from Rs 995 million in the corresponding quarter of previous fiscal.

“Comparable consolidated net profit remains steady at Rs 670 million in Q2FY18 compared to Rs 660 million in Q2FY17 (excluding one-time deferred tax reversal adjustment of Rs 340 million),” the company had said in a statement.

Last month, Reliance Infrastructure and Adani Transmission had signed a definitive binding agreement for 100% stake in the former's Mumbai power generation, transmission and distribution business.

Meanwhile, the board of directors of Adani Ports and Adani Enterprises are scheduled to meet on Thursday, January 18, 2017 to consider their respective unaudited financial results for the quarter ended December 2017.

“Revenues for Adani Ports are expected to grow 22.5% year on year (YoY) on account of growth in container volumes as the company continues to capture market share in the container segment, growth in realizations from the Abbot Point Operations subsidiary, as well as, elevated SEZ income. Reported profit is expected to rise 16% YoY for the company mainly due to improved operational profitability and contribution of high margin SEZ construction income,” Emkay Global Financial Services said in Q3FY18 results preview.

“Post a soft Q2, cargo volumes have rebounded with major ports reporting around 8‐10% growth in Q3. We expect 15% cargo volume growth riding 20% growth in container volumes and new supplies in coal market. Overall, we expect 15% growth in revenues for Adani Ports,” analyst at Edelweiss Securities said in results preview.

COMPANY LATEST PREV CLOSE GAIN(%)
ADANI ENTERP. 202.85 194.40 4.35
ADANI TRANSMISSI 231.90 223.40 3.80
ADANI PORTS 431.80 422.75 2.14