Adani Ports records nearly 22% fall in profit in Q4
What's the story
Adani Ports and Special Economic Zone (APSEZ) has announced its financial statement for the fourth quarter of FY22. The company's consolidated net profit fell to Rs. 1,033 crore, down by 21.78% from the Rs. 1,321 crore posted in Q4 FY21. The quarterly revenue, however, climbed to Rs. 4,417.87 crore from Rs. 4,072.4 crore year-on-year (YoY). The consolidated revenue in FY22 was Rs. 15,934 crore.
Context
Why does this story matter?
Adani Ports, India's largest integrated logistics player, had a great FY22 by the look of its BSE filing. However, unexpectedly, the company suffered an over 20% dip in its profit. It is clear from the filing that it has performed as many expected in FY22. The profit decline in the last quarter could be attributed to the ongoing geopolitical crisis that has impacted everything.
Stats rundown
Adani Ports made acquisitions worth around Rs. 11,400 crore
In Q4 FY22, Adani Ports' income was Rs. 4,417.87 crore. The company recorded a consolidated net profit of Rs. 1,033 core. It reported an EBITDA of Rs. 9,811 crore, a growth of 22% YoY, and its total cargo value grew by 26% YoY to 312MMT. In FY22, the company made acquisitions worth around Rs. 11,400 crore.
Outlook
The net debt to EBITDA ratio stood within the limits
In FY22, APSEZ (excluding Gangavaram) recorded a port revenue of Rs. 12,964 crore, up by 21% YoY, while the income from the logistics business grew by 26% to Rs. 1,208 crore. The EBITDA from ports rose 21% to Rs. 9,120 crore, whereas the logistics business posted an EBITDA of Rs. 320 crore. The net debt to EBITDA in FY22 stood at 3.4x.
Information
Shares fell 5% after reporting profit dip
After announcing that it suffered a decline in profit in Q4, Adani Ports has suffered a setback in the stock market. The company's shares opened at Rs. 735/share. However, at the time of writing, it was trading at Rs. 710 apiece, down by around 5.5%.