Adani Ports

Globally, with the situation grim, one would have thought that a port company like Adani might have been impacted. Though it did feel the brunt to some extent, it has still managed to hold its steed. The Q2Fy13 numbers were not as good as current Q1. It posted a flat (QoQ) and 4% (YoY) drop in consolidated net profit at Rs.275.56 crore and this was on a very flat net revenue at Rs.1018 crore compared to Rs.1028 crore in Q1FY13. Sequentially, its operating costs rose by a whopping 70% and thankfully the forex gain of Rs.21.04 crore helped. Its interest outgo for the quarter was down 25% (QoQ) at Rs.243 crore.

The consolidated cargo handled by the company at Adani ports stood at 25.34 million tons (MT), an increase of 15% on a YoY. It continues to be the second largest commercial port of India both in total cargo as well as in the containers. The existing cargo handling capacity of the company stands at 150 MTPA, which the company plans to augment to 200 MTPA by 2020. The company recently signed a contract with Kandla Port for setting up a dry bulk terminal for transportation of coal and iron ore at an investment of 1,200 crore on BOT basis. The terminal is expected to be ready in 2014. The dampener is the fact that the Govt, last week cancelled its 1,840 hectare special economic zone (SEZ) in Gujarat for alleged violation of the law on at least three counts - contiguity norms, started unauthorized construction and was landlocked, which denied access to the proposed facility. This cancellation will have no impact on its 6,500 hectare project and in all likelihood; the company might either go to Court or might seek fresh permission for 1840 hectares after it takes care of the alleged violations.