Decent performance from Adani PortsADANIPORTS - 1026 Change: -13.60 (-1.31 %)
News: Adani Ports' Q3FY22 adjusted revenues (ex-SRCPL) was flat YoY at Rs.3667 crore, mainly due to 4% decline in the port revenues (11% decline in total cargo volumes). Adjusted EBITDA margin largely came in 62-63% levels range (63.2% vs 66% in Q3FY21), due lower operating leverage, leading to absolute adjusted EBITDA de-growth of 7% to Rs.2319 crore. However, adjusted PAT de-grew 14% to Rs.1353 crore, due to a forex gain of Rs.206 crore in the base quarter.
Views: The numbers were above I-direct estimates on all fronts. YoY fall in overall volumes (68 MMT vs. 76 MMT), mainly led by lower coal volumes (18.4 MMT vs. 27.2 MMT). While the company has consolidated Sarguja rail in Q3, it expects Gangavaram consolidation in Q4. The company has lowered its revenue (Rs.17000 crore vs. earlier Rs. 18000 crore), EBITDA (Rs.10600 crore vs. Rs.11500 crore), FCF (Rs.6400 crore vs. Rs.7100 crore) guidance.