Adani Ports shares rise ahead of Q1 earnings, here’s what to expect

Shares of Adani Ports and Special Economic Zone were in focus today as the Adani Group firm will announce its earnings for the quarter ended September 2022. The stock gained 0.89 per cent to Rs 830.45 in early trade. The stock has been rising for two days. The large cap stock opened higher at Rs 829 against the previous close of Rs 823.05 on BSE. Adani Ports shares have gained Rs 17 or 2.09 per cent since the earnings for the June 2022 quarter were announced on August 8.

In the first quarter, the firm reported a 16.1 per cent fall in consolidated net profit at Rs 1,072 crore. The multi-port operator, which is a part of billionaire Gautam Adani-led Adani group, had posted a net profit of Rs 1,278 crore in the year-ago period.

Revenue from operations fell marginally to Rs 4,737 crore as against Rs 4,672 crore in the same quarter last fiscal. However, sequentially, the company’s profit rose 5 per cent from Rs 1,024 crore in the preceding quarter (Q4FY22).

Currently, the stock trades higher than 5 day, 20 day, 100 day and 200 day moving averages but lower than 50 day moving averages. Adani Ports shares have gained 17.49 per cent in one year and risen 13.34 per cent since the beginning of this year.

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Market cap of the firm rose to Rs 1.74 lakh crore on BSE. Total 0.64 lakh shares of the firm changed hands amounting to a turnover of Rs 5.30 crore on BSE. The stock hit a 52 week high of Rs 987.90 on September 20, 2022 and a 52 week low of Rs 652.05 on February 24, 2022.

Earnings preview

The Adani group company is likely to report a 21 per cent year-on-year (YoY) rise in Q2 net profit at Rs 1,600 crore led by a 32 per cent YoY rise in net sales at Rs 4,700 crore,  financial services firm Motilal Oswal said.

Elara Securities expects profit to come at Rs 986 crore. It sees sales climbing 26.6 per cent YoY to Rs 4,471 crore.

Adani Ports’ volume rose 28 per cent YoY at 90 mt and Elara sees similar port revenue growth, with port Ebitda margin maintained at 70 per cent. The performance will be backed by growth in the logistics segment of 30 per cent with margin maintained at 26 per cent, it said.

Meanwhile, Kotak Institutional Equities sees a profit of Rs 1,018.40 crore in the September quarter.

“We model an 11 per cent YoY improvement in comparable revenues. The consolidation of Gangavaram port volumes from Q2 yields a higher 26 per cent YoY growth in volumes. Higher yoy realisations and SEZ boost drive 40 per cen YoY growth in revenues,” it said.

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