Adani Ports share price rises 2% ahead of Q4 earnings

Stocks

The share touched a 52-week high of Rs 885 on April 7, 2021 and a 52-week low of Rs 256.05 on May 6, 2020.

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Adani Ports and Special Economic Zone share price jumped more than 2 percent intraday on May 4, hours before the company announces its March quarter earnings.

The company’s board of directors are meeting on May 4 to consider and approve the audited financial results for the quarter and year ended March 31, 2021 and recommend a dividend, if any, for the Financial Year 2020-21.

The company is expected to report robust growth in March 2021 quarter earnings, driven by volumes and operating performance.

“We model 29 percent YoY increase in volumes based on monthly updates shared by ADSEZ along with the consolidation of Krishnapatnam port from the second half of FY21,” said Kotak Institutional Equities, which sees a 280 percent year-on-year growth in profit and a 26 percent rise in revenue for the March quarter.

At the operating level, the brokerage expects a sequential improvement in EBITDA margin of 67.1 percent on price hikes taken during Q4 FY21.

Also read: Adani Ports Q4 preview: Topline expected to rise 27%, robust volumes & operating performance to support earnings

EBITDA (earnings before interest, tax, depreciation and amortisation) is likely to grow by 50 percent and EBIT growth could be 62 percent YoY. The EBITDA margin is expected to expand by 1,081 bps YoY and 68 bps QoQ at 67.1 percent in Q4 FY21, said the brokerage.

The company reported a robust operational performance in April with a handled cargo volume of 24.46 MMT, registering a growth of 86 percent on a year-on-year basis.

In the container segment, the company handled a volume of 0.69 million TEUs in April 2021, registering a 98 percent growth YoY.

adniports

At 1202 hours, Adani Ports and Special Economic Zone was quoting at Rs 774.50, up Rs 13.25, or 1.74 percent on the BSE.

The share touched a 52-week high of Rs 885 on April 7, 2021 and a 52-week low of Rs 256.05 on May 6, 2020. It is trading 12.49 percent below its 52-week high and 202.48 percent above its 52-week low.