Adani Ports reports 74 per cent decline in net profit in Q4 update
Adani Ports and Special Economic Zone Limited has reported a 74 per cent decline in consolidated net profit to Rs 340.21 crore for the fourth quarter, ended March 31.
The update said the company will reduce operating costs in FY21 and its capex will be curtailed to Rs 2,000 crore with focus on conserving cash, generating higher free cash flow and increasing the return on capital employed (ROCE) from its business.
Adani, the country’s largest integrated logistics player had clocked consolidated net profit of Rs 1,314.19 crore in the corresponding period a year earlier, the company said in a BSE filing.
Its consolidated total income marginally declined to Rs 3,360.17 crore for the fourth quarter as against Rs 3,492.72 crore in the year-ago period. Total expenses during the quarter under review rose to Rs 3,099.18 crore as against Rs 1,840.35 crore.
Karan Adani, Chief Executive Officer and Whole Time Director of Adani, said: “Our strategy to diversify and ability to handle all types of cargo enabled us to outperform and deliver another year of stellar operational and financial performance.
“In FY20, we added LNG and LPG into our cargo portfolio. We have also increased our logistics footprint by focusing on increasing connectivity to our ports through our own rakes, inland freight terminals, warehousing solutions and concentrating on end mile connectivity.”
Adani said the focus going forward will be “conserving cash, generating higher free cash flow and increasing the ROCE from the business”.
He added: “The majority of our administrative staff are working from home [due to COVID-19]. Ports fall under essential services and as such all our ports are operating efficiently during this period of crises to ensure that supply chain of essential goods is not disrupted.”
The company said its logistics business has grown substantially during the period and rail volume increased by 115 per cent: “All currently operates 60 rakes and is the largest private rail operator in India.”
It has 11 strategically located ports and terminals — Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai — representing 24 per cent of the country’s total port capacity.
The company said it is also developing a transhipment port at Vizhinjam, Kerala and a container Terminal at Myanmar.
For more information visit www.adaniports.com
11th May 2020
