India's Adani Ports reports 47% jump in Q1 profit on strong cargo volumes
India's Adani Ports and Special Economic Zone reported a 47% jump in quarterly profit on Thursday, as strong commercial activity in the world's fifth-largest economy lifted cargo volumes, according to Reuters.
Shares of the Adani Group company were up 1.2% after the results, while the broader benchmark Nifty 50, gained 0.2%.
India's largest private port operator by volumes, Adani Ports said its consolidated net profit rose to 31.13 billion rupees (nearly $372 million) in its fiscal first quarter ended June, from 21.15 billion rupees a year earlier. Revenue increased by more than 11% to 69.56 billion rupees. This excludes the 6.03 billion rupees received from the divestment of the Ennore terminal in Tamil Nadu state. Port operators have benefited from sustained cargo movement in and out of India, supported by healthy domestic demand and sturdy commercial activity in Asia's third-largest economy.
Cargo volumes handled by Adani Ports rose 7.5% in the June quarter to 109 million metric tons (MMT), despite a loss of 6 million metric tons (MMT) in April and May due to the shutdown of its Gangavaram port in Andhra Pradesh state.
Adani Ports had declared a force majeure at its Gangavaram port in April after agitation by certain section of employees disrupted cargo handling and other associated cargo operations. The company, which is a part of billionaire Gautam Adani's ports-to-power conglomerate, operates 13 ports and terminals in India, including the country's largest container handling port in Mundra in the western state of Gujarat. The Mundra port handled 17.6 MMT cargo in May, a record monthly volume for any Indian port. Last month, smaller rival JSW Infrastructure posted a lower quarterly profit due to higher expenses.
