Adani Ports’ PAT jumps 72% backed by one time tax gain

Adani Ports and Special Economic Zone (APSEZ) reported its Q2 2019 earnings after market hours on Monday.

On consolidated basis, the company reported a 10.9% rise in profit before tax (PBT) to Rs 886.34 crore in Q2 September 2019 over Q2 September 2018.

The profit after tax (PAT) jumped 72.44% to Rs 1059.20 crore in quarter ending September 2019 as against the corresponding quarter of the previous year. PAT was supported by one time tax gain of Rs 319 crore in Q2 2019 over Q2 2018.

Commenting on company’s performance, Karan Adani, chief executive officer and whole time director of APSEZ said, “APSEZ continues to gain market share due to strategy of having multi commodity ports across key locations. Q2 of FY20 was subdued but container volume continues to be strong. We expect H2FY20 to be better and confident of achieving 224-228 MMT of cargo throughput in FY20. With the recent cut in Repo rate, corporate tax reduction and resolve of the Government to accelerate economic growth, we expect economy to revive from Q1FY21. With our pan India presence and ability to handle all types of cargo at all our ports, we are best placed to capture the revival in Indian economy and are confident of achieving 10 to 12% CAGR cargo volume growth for the next few years. Automation and use of technology to handle cargo, sweating of enhanced capacity and better cargo mix will continue to drive margin expansion.”

Shares of APSEZ closed 0.4% higher at Rs 387.55 on Monday. The stock has underperformed the benchmark index. APSEX rose 2.99% in three months as compared to a 7.23% rise in Nifty 50 index.

BSE, NSE are shut today, 12 November 2019, on account of Guru Nanak Jayanti

Adani Ports and Special Economic Zone (APSEZ) is a part of globally diversified Adani Group. APSEZ is the largest port developer and operator in India.