Adani Ports shares fall post April business update, ahead of Q4 results, dividend

Shares of Adani Ports & Special Economic Zone Ltd (APSEZ) on Thursday were trading lower following the Adani group company's April business update, as investors awaited its March quarter results scheduled for later in the day.

In a filing to stock exchanges, Adani Ports said it handled 36.2 mmt of total cargo, in April, up 12 per cent YoY. APSEZ said growth was recorded across most domestic ports, with Dhamra Port recording its highest ever monthly cargo of 4.38 mmt.

The Gautam Adani-led company said growth in April was seen across three broad cargo categories i.e., Dry (up 7 per cent YoY), Liquid & Gas (up 29 per cent), and Container (up 14 per cent). Besides, Adani Ports said growth in logistics segment continued with rail volumes up 5 per cent YoY at 49,430 TEUs and GPWIS volumes increasing 26 per cent to 1.8 mmt.

Adani Ports shares were down 1.09 per cent at Rs 1, 310.40. APSEZ is likely to report a fall in profit for the March quarter despite a 20 per cent-plus growth in sales. Analysts said investors would focus on global container trade and the performance of international ports. Besides, they would track cargo volume guidance for FY25, in addition to capex guidance for the ongoing financial year. The Adani Ports board would also be considering paying dividend for FY24 at its meeting today.

Elara Securities sees adjusted profit falling 1.8 per cent YoY to Rs 2,251.80 crore. The brokerage projected sales at Rs 6,958.40 crore, up 20 per cent. Equirus Securities sees Adani Ports reporting 12.4 per cent YoY drop in net profit at Rs 2,129.60 crore compared with Rs 2,432.30 crore in the same quarter last year. It sees sales rising 20.7 per cent YoY to Rs 6,996.40 crore compared with Rs 5,796.90 crore YoY. Ebitda margin is seen at 60 per cent, up 377 basis points YoY.

BNP Paribas noted that Adani Ports acquired Gopalpur port with FY23 cargo volumes of 7.3 mt and FY25 (company) estimated volumes of 12 mt. With the acquisition and potential turnaround in operations of Gangavaram and Karaikal ports, BNP Paribas expect Adani Ports to provide cargo volume guidance of 450 mmt-plus (potentially in 470-490 mmt range).