Adani Ports and Special Economic Zone (APSEZ) reported a net profit of Rs 710 crore for the first quarter of 2017-18 (April – June).But alarms bells should rang for APSEZ as it was a 14 percent decline from Rs 823 clocked last in first quarter last year. The port developer and logistic arm of $12 billion Adani group said consolidated revenue shot up 50 percent to Rs 2,745 crore from Rs 1,827 crore last year.
Sequentially, net profit in Q1 was 39 per cent lower than Rs 1,164 crore last quarter while revenue was up 23 per cent from Rs 2,232 crore last quarter. Ebitda (earnings before interest, tax, depreciation and amortization) increased 37 per cent to Rs 1,598 crore for Q1 from Rs 1,170 crore in same quarter year ago. The company said in a filing that net profit is lower due to higher tax indices at Mundra, which is out of tax holiday period.
APSEZ handled 50 tonne of cargo, including 6 tonne by its Australian arm Abbot Point Operations Ltd. In line with strategy to diversify cargo mix, container volumes grew 21 per cent and other bulk cargo grew 12 per cent in the quarter. Container volumes at Mundra grew 20 per cent, Hazira 25 per cent and Kattupalli port near Chennai grew 31 per cent.
Container shipping liners have started three new services at Mundra and two at Hazira in Q1, while the joint venture with France’s CMA-CGM commenced operations at Mundra. Adani Logistics commissioned multimodal logistic park at Kila Raipur in Punjab. Chief Executive Karan Adani hopes with string of ports providing multi-point access higher cargo volume growth is anticipated.