Adani group stocks Adani Enterprises Ltd (AEL) and Adani Ports & Special Economic Zone Ltd (Adani Ports) advanced 1 per cent each in Thursday's trade, ahead of their quarterly earnings. Shares of Adani Enterprises rose 1.06 per cent to hit a high Rs 2,343.50, while those of Adani Ports added 1.15 per cent to Rs 1,109.95 on BSE.
In the case of Adani Ports, BNP Paribas expects the Adani group firm to report 24.2 per cent YoY rise in net profit at Rs 2,743 crore for the December quarter on 8.6 per cent YoY rise in sales at Rs 7,517 crore. Ebitda is seen rising 8.9 per cent YoY to Rs 4,558 crore while Ebitda margin is seen expanding 10 basis points YoY to 60.6 per cent.
"Adani Ports reported Q3FY25 volumes of 112.3mt, modestly higher than 2QFY25, despite the addition of volumes from Gopalpur Port. Recall that in Q2FY25 volumes at Mundra Port were impacted due to weather, with the port’s August volume falling QoQ to 50mt from 51mt," BNP Paribas said.
Gangavaram Port’s Q2FY25 volumes were impacted by the slowdown in steel production at Rashtriya Ispat Nigam (RINL, unlisted) owing to a working capital crunch at the steel plant. "We expect volumes at both Mundra and Gangavaram to improve QoQ in 3QFY25. We note that RINL has started its second blast furnace," BNP Paribas said.
For Adani Enterprises, the earnings preview was unavailable. But Ventura Securities in a note last month expected Adani Enterprises Ltd's consolidated revenue to grow 17.5 per cent annually to Rs 1,56,343 crore, Ebitda 37.5 per cent to Rs 28,563 crore and net earnings 45.8 per cent at Rs 9,245 crore over FY24-27. Ebitda and net margins are projected to expand by 647 basis points (bps) to 18.3 per cent and 255 bps to 5.9 per cent.
"Strong growth in airports and solar/WTG businesses and revenue contribution from copper are expected to enhance financial performance and profit margins. As a result, return ratios – RoE and RoIC – are expected to improve by 563bps to 14.5 per cent and 99bps to 11.3 per cent, respectively," Ventura said.
In another note, it said this recent Adani Wilmar deal would improve the Adani portfolio’s net debt-to-Ebitda ratio, currently at 2.4 times, solidifying the group’s financial resilience. "With the war chest ready, AEL is poised to reassert its leadership in infrastructure and consumer services while reinforcing its growth story in an era of renewed investor confidence," it said on December 31.