Adani Ports rallies posts strong Q3 profit

Bengaluru, 2 February: Shares of Adani Ports and Special Economic Zone closed 3.5% higher today.

This comes a day after India's largest private port operator reported a nearly 68% surge in third-quarter profit, aided by a jump in cargo volumes and higher tariffs.

The consolidated net profit rose to ₹2,208 crore ($266.1 million) in the October-December quarter, the company, which is part of billionaire Gautam Adani's conglomerate, said.

Revenue from operations also rose 44.6% to ₹6,920 crore in the quarter, boosted by a 44% growth in cargo volumes.

The company earlier this month said that it is targeting over 400 million tonnes of cargo volumes for FY24, surpassing the upper-end of its forecast range.

Adani Ports' volume handling capacity has grown four-fold since 2011 as the country's exports and imports surge.

The company operates 13 ports and terminals in India, including the largest container handling port in Mundra in the western state of Gujarat.

Shares in Adani Ports have more than doubled from the multi-year lows hit in February 2023 after a report by U.S. short-seller Hindenberg Research flagged debt levels and alleged irregularities at the Adani Group. The group denied all allegations.

The shares are up more than 20% so far this year, while the blue-chip NIFTY50 index is largely flat.

(The story has been published from Reuters without major changes.)