Adani Ports Q3 Results: Strong Growth Despite Market Expectations
Adani Ports and Special Economic Zone (APSEZ) has reported a solid 14% year-on-year (YoY) growth in consolidated net profit for the third quarter of FY25, reaching Rs 2,520 crore. This growth, while impressive, came in below market expectations, as analysts had projected profits in the range of Rs 2,597 crore to Rs 2,711 crore.
Revenue and Profit Trends
The company’s revenue from operations stood at Rs 7,964 crore, marking a 15% YoY increase from Rs 6,920 crore in Q3FY24. Sequentially, revenue grew by 13% compared to Rs 7,067 crore in Q2FY25. Profit after tax (PAT) rose by 3% quarter-on-quarter (QoQ) from Rs 2,445 crore in the previous quarter.
However, despite these strong earnings, Adani Ports' stock took a hit, with shares falling 5% to Rs 1,042 on the NSE following the earnings announcement.
Segment Performance
Port & SEZ Operations: Revenue from this segment rose to Rs 7,413 crore, showing growth over both Q2FY25 (Rs 6,421 crore) and Q3FY24 (Rs 6,358 crore).
Other Segments: Contributed Rs 893 crore, up from Rs 679 crore in Q2FY25 and Rs 623 crore in Q3FY24.
Adani Ports' EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) reached Rs 4,802 crore, reflecting a 15% increase from Rs 4,186 crore in the previous year. The company’s net debt to trailing twelve-month (TTM) EBITDA improved to 2.1X from 2.3X in FY24.
CEO's Outlook and Future Projections
Ashwani Gupta, Whole-time Director & CEO of APSEZ, expressed confidence in the company’s trajectory, highlighting the firm’s strategic gains in market share, logistics integration, and technological advancements.
“We have achieved fantastic momentum in 9M FY25 through market share expansion, volume-price mix improvements, and efficiency gains. Our newly launched trucking platform is set to enhance our logistics capabilities, making us a truly integrated Transport Utility,” Gupta said.
Additionally, the company has revised its FY25 EBITDA forecast upward to Rs 18,800-18,900 crore, signaling confidence in continued growth.
Market Impact and Stock Reactions
Despite strong earnings, investor sentiment remained cautious, leading to a 5% drop in Adani Ports' share price post-results. This could be attributed to the company missing analyst expectations and broader market volatility.
Final Thoughts
Adani Ports continues to exhibit strong financial health and operational efficiency, positioning itself as a dominant player in India’s logistics and port operations sector. While immediate market reactions were subdued, long-term investors may find the company's consistent growth and future projections promising.
Reference from:-https://economictimes.indiatimes.com/markets/stocks/earnings/adani-ports-q3-results-cons-pat-rises-14-yoy-to-rs-2520-crore-revenue-up-15/articleshow/117728536.cms?from=mdr