Adani Ports to maintain its net profits in September 2012 quarter

MUMBAI: A healthy growth in cargo handled at Mundra port, helped Adani Ports & Special Economic Zone to maintain its net profits in the September 2012 quarter. With the capacity ramp up at other ports, the company's earnings are expected to improve in the coming quarters.

APSEZ currently has three operational ports, which include Mundra, Abbott(Australia) and Dahej. The company's standalone operations take into account performance of only Mundra port. In the September 2012 quarter, Mundra port registered a 15% growth in cargo volumes, while its average realization fell marginally by 3%. In addition, due to interest expenses increased 91% due to capex at the port.

The company has increased its debt by Rs 1500 crore this year for capex on mechanization of container terminal, development of agro complex at Mundra and doubling of railway line.

At the consolidated level, APSEZ's net profits fell by 4% to Rs 276 crore due to loss at its other ports. The losses at Abbott Point narrowed to Rs 54 crore from Rs 135 crore in the previous quarter. At Abbot Point, the company has a take or pay agreement for the next five years for the entire capacity, which ensures a stable realizations in future.

It is believed the Abbott Point port may break even in the next year. In addition, the company has started trial runs ahead of schedule at Hazira port. The port at Hazira is likely to be operational in a few months from now.