Adani Ports Q1 PAT dips as Mundra tax holiday ends

Adani Ports & SEZ posted a two per cent year-on-year (YoY) drop in net profit for the quarter ended June 30, 2017, on a standalone basis, even as its revenues swelled by 71 per cent for the period.

APSEZ posted a net profit of ~590.71 crore in Q1FY18, down two per cent, while its revenue from operations actually grew by 71 per cent to ~1,805.7 crore. Its operating expenses increased from ~190 crore in Q1FY17 to ~589 crore in the quarter under review.

On a consolidated basis, revenues grew by 50 per cent YoY to ~2,754.14 crore while its net profit dipped by 13.6 per cent to ~710.25 crore. Consolidated EBITDA grew 37 per cent YoY from ~1,170 crore in Q1FY17 to ~1,598 crore.

The profit after tax is lower due to higher tax incidence at Mundra which is now out of tax holiday period. “However, from a tax cash flow angle, there is no change (impact) as MAT credit of earlier years is available to the tune of ~2,700 crore,” it said in a statement to the exchanges.

Revenues from the port and SEZ operations grew from ~1,680.26 crore in Q1FY17 to ~2,568.64 crore.

Karan Adani, chief executive officer and whole time director of APSEZ said, “We expect our cargo volumes to grow as per our earlier guidance in FY18. Mundra port is on the verge of becoming the largest container handling port in India. We will continue to pursue our plans to expand our logistic footprints by adopting Asset light model.”