Adani Ports and Special Economic Zone (SEZ) Ltd’s investors don’t seem to be upset with the 5% year-on-year drop in revenue and 15% decline in operating earnings in the March quarter (Q4).
The stock gained nearly 3% on Wednesday. Note that it has lost 28% in three months to Q4 results announcement, reflecting investor concerns over business disruption due to covid-19.
Delay in executing contracts hit SEZ business revenue. The 1% revenue growth and 3% expansion in operating profits at the mainstay ports business did not impress either.
This is lower than the 7% volume growth, and represents poor business mix. Even so, the bigger impact will be felt in the current quarter (Q1 FY21).