homebusiness Newscompanies NewsAdani Ports maintains annual cargo volume guidance despite ban on rice exports
Adani Ports maintains annual cargo volume guidance despite ban on rice exports
Adani Ports managed to grow cargo volumes in double-digits despite the restriction on exports of rice and an extended monsoon season.
Adani Ports & Special Economic Zone said that it is well aligned to meet its annual cargo volume guidance of 350-360 metric million tonnes (MMT). The company has maintained its guidance despite an extended monsoon and the ban and higher duties on rice exports imposed in early-September.
India's largest operator of commercial ports reported a 13 percent year-on-year growth in cargo volumes in September to 26.1 MMT.
Last week, the government further extended the last date for the export of broken rice in transit to October 15, after extending it twice previously. It had banned the exports of broken rice on September 8. It also imposed a 20 percent export duty on non-basmati rice, except for parboiled rice to boost domestic supplies due to the fall in area under the paddy crop during the current kharif season.
For the first six months of the current financial year, Adani Ports managed 177.5 MMT of Cargo, which is nearly half of its annual guidance. The first half cargo volumes is a growth of 11 percent over the corresponding period of last year.
Cargo volumes on India's east coast increased 13 percent from last year, supported by Adani's recent acquisitions like Krishnapatnam (up 13 percent), and Gangavaram (up 9 percent). Port volumes from Kattupalli and Ennore together grew 51 percent year-on-year. The 10 percent growth in West Coast cargo volumes were supported by Mundra (up 65 percent), and Goa (up 22 percent).
The company has been in the news last month after its unit, HDC Bulk Terminal, signed a concession agreement with Syama Prasad Mookerjee Port in Kolkata for the mechanisation of Berth 2 at Haldia Port. It had emerged as a successful bidder for the project in February this year.
Jefferies had recently raised its price target on the stock to Rs 1,100, raising its earnings estimates by 3-7 percent for the next two years. Citi also expects the company's strong operating performance to drive a rerating going forward.
Shares of Adani Ports are trading 1.4 percent higher at Rs 831.75. The stock is up 13 percent year-to-date.
First Published: Oct 3, 2022 1:36 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM