Two flagship companies of Adani Group – Adani Enterprises and Adani Ports and Special Economic Zone – are slated to release their earnings for the quarter ended December today.

There are no estimates available for Adani Enterprises, but analysts expect Adani Ports to report a strong set of numbers on the back of a healthy growth in cargo volumes and healthy sales mix.

Adani Enterprises

While estimates aren’t available, the airports business is likely to have done well given the higher passenger traffic amid festive season and year-end holidays.

Investors will keep a close watch on the performance of the mainstay integrated resource management (IRM) business performance.

IRM business was impacted in the September quarter due to lower volume and correction in coal prices, and this weighed on the overall earnings during the period.

Also Read | Q3 results today: Adani Enterprises, Adani Ports, Titan among 86 companies to announce earnings

Adani Enterprises had reported a sharp 51% drop in consolidated net profit for the September quarter to Rs 227.82 crore, and a 41% decline in revenue to Rs 22,517.30 crore.

Adani Ports and SEZ

The ports major is seen reporting a 42-50% year-on-year (YoY) growth in consolidated revenue for the December quarter, led by healthy growth in cargo volumes.During the quarter, cargo volumes handled by the company was 106 million tonne, with around 106 million tonne contribution coming from the domestic ports portfolio, the company said while sharing a provisional update in January.

For the nine months ended December, the company managed around 311 million tonne of cargo, which was 23% higher from the year-ago period.

Buoyed by this growth, the company said it is targeting over 400 million tonne of cargo volumes in FY24, higher than its guided range of 370-390 million tonne at the start of the financial year.

“We expect revenue to increase by 43% YoY to Rs 68.6 billion, driven by 37% YoY growth in volumes and 20% YoY growth in logistics business,” Motilal Oswal Securities said.

Aided by the strong volume growth, analysts expect operating profit to grow by 34-43% YoY. Net profit is seen rising 36-63% from the year-ago period.

Among the key monitorables for analysts will be Improvement in utilization at existing and recently acquired ports, and growth in logistics business.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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