InvestorQ : What was the reason for the fall in profits of Adani SEZ for the Jun-20 quarter?
diksha shah made post

What was the reason for the fall in profits of Adani SEZ for the Jun-20 quarter?

Answer
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Mary Joseph answered.
2 months ago


One of India’s largest port infrastructure providers, Adani Ports and SEZ, reported a sharp 26% deceleration in net profits at Rs.758 crore in the Jun-20 quarter on reduced trade and commerce in the country overall in the midst of the global slowdown.

Total revenues for the Jun-20 quarter also fell 17% to Rs.2293 crore on the back of weak cargo volumes. Merchandise trade has been quite tepid in the last few months and that has taken its toll on the performance, which is linked to the volumes of trade.

However, there was some good news for Adani on another front altogether. In fact, during the quarter, Adani Ports managed to handle more of containerized cargo even beating the Mumbai based JNPT in the process. This is the first time that has happened.

Overall cargo volumes saw a fall by 27% to 41.41 MMT during the quarter. Containerized cargo got a boost from oil storage demand. With anticipated pick up in trade, the Sep-20 quarter is expected to show better traction for Adani SEZ.