 "Adani Ports dips over 10% post Q4 results")
Adani Ports and Special Economic Zone (SEZ) has slumped 11% to Rs 210, its sharpest fall since August 24, 2015 on the BSE in intra-trade after the company reported lower than expected EBITDA (earnings before interest, taxes, depreciation and amortization) margin for the quarter ended March 2016 (Q4FY16).
The company’s consolidated Q4FY16 revenue of Rs 1,947 crore was boosted owing to one time income of Rs 344 crore from reduction in Adani Ports & SEZ’s stake in Mundra Solar Tech Park (MSTPL) to 11% from 49% earlier.
“Ex-MSTPL income, adjusted revenue of Rs 1,600 crore was 7% lower than estimate while EBITDA of Rs 910 crore and net profit of Rs 560 crore were 15% and 12% below estimate, respectively owing to Q4FY16 coal volume declining 15% year on year (YoY) to 15 million tonnes (est. 10%),” Elara Capital said in a note.
According to Emkay Research, Port EBITDA margin came at 54.7%, down 677 basis points YoY against expectation of 62%.
“We believe transient pain of lower bulk volumes as well pressure on Port EBITDA Margin to sustain in near term, however any incremental improvement overall trade remains the key catalyst over the next 12-18 months’ time,” Emkay Research said in a result update.
Given the increase in the India’s coal production volume, growth from the bulk segment will be challenging going forward. The transient pain of bulk volumes to be replaced by increasing share of liquid and container cargo in the overall mix and inorganic growth but will take time, given the weakness in overall trade, added report.
At 11:28 am, the stock was down 10% at Rs 213 on the BSE on back of heavy volumes. A combined 13.49 million shares already changed hands on the counter against an average sub two million shares that were traded daily in past two weeks on the BSE and NSE.
The company’s consolidated Q4FY16 revenue of Rs 1,947 crore was boosted owing to one time income of Rs 344 crore from reduction in Adani Ports & SEZ’s stake in Mundra Solar Tech Park (MSTPL) to 11% from 49% earlier.
“Ex-MSTPL income, adjusted revenue of Rs 1,600 crore was 7% lower than estimate while EBITDA of Rs 910 crore and net profit of Rs 560 crore were 15% and 12% below estimate, respectively owing to Q4FY16 coal volume declining 15% year on year (YoY) to 15 million tonnes (est. 10%),” Elara Capital said in a note.
According to Emkay Research, Port EBITDA margin came at 54.7%, down 677 basis points YoY against expectation of 62%.
“We believe transient pain of lower bulk volumes as well pressure on Port EBITDA Margin to sustain in near term, however any incremental improvement overall trade remains the key catalyst over the next 12-18 months’ time,” Emkay Research said in a result update.
Given the increase in the India’s coal production volume, growth from the bulk segment will be challenging going forward. The transient pain of bulk volumes to be replaced by increasing share of liquid and container cargo in the overall mix and inorganic growth but will take time, given the weakness in overall trade, added report.
At 11:28 am, the stock was down 10% at Rs 213 on the BSE on back of heavy volumes. A combined 13.49 million shares already changed hands on the counter against an average sub two million shares that were traded daily in past two weeks on the BSE and NSE.