Adani Ports up 3% on post Q4 results

Adani Ports and Special Economic Zone was trading 3% higher at Rs 408 on the BSE, after the company reported mixed set of numbers with consolidated revenue from operations up 43% year on year (YoY) at Rs 31.83 billion during March quarter (Q4FY18), on back of higher cargo volumes.

The consolidated net profit declined 20% YoY at Rs 9.29 billion in Q4FY18, due to weak product mix and higher tax outgo. Consolidated cargo for Q4FY18 increased by 6% to 45.44 MMT as against 42.67 MMT in Q4FY17.

The net profit would have been higher but for higher tax incidence to Rs 3.96 billion in Q4FY18 from Rs 120 million in Q4FY17.

This is because Mundra port has come out of tax holiday period. However, from cash flow angle there is no incremental impact as company has MAT credit entitlement, Adani Ports said in a press release.

EBITDA (earnings before interest, tax, depreciation and amortization) margin improved 92 bps to 60.67% from 59.75%.

 
The company expect EBITDA margins to increase by at least 100bps every year and peak at around 73%.

“A commitment to improve balance sheet leverage, management confidence in a strong FY19 guidance, lower capex going ahead and assurance of higher payouts from the free cash flow generated, leads us to maintain our recommendation at Accumulate with an SoTP target of Rs 450/share,” analyst at Emkay Global Financial Services said in result update.

At 01:50 pm; the stock was trading 2.6% higher at Rs 407, the top gainer among S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 3.81 million shares changed hands on the NSE and BSE so far.