Shares of Adani Ports and Special Economic Zone (APSEZ) plunged over 6 per cent on Thursday after a rating agency Moody's revised the outlook on APSEZ to negative from stable.
Shares of Adani Ports and Special Economic Zone (APSEZ) plunged over 6 per cent on Thursday after a rating agency Moody’s revised the outlook on APSEZ to negative from stable.
The share price of the company closed 6.14 per cent down at Rs 171.85. The scrip opened at Rs 183 and touched a high and low of Rs 183.80 and Rs 170.15, respectively, in trade. The benchmark BSE Sensex closed 1.19 per cent, or 305 points, down at 25,399.72.
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The change in ratings outlook reflects the company’s lower volume growth, mainly due to lower coal volumes, and a rise in capital expenditure and financial leverage.
The agency said this trend was visible in fiscal year ending March 31, when APSEZ’s overall cargo growth grew by only 5 per cent year on year mainly due to 8 per cent year on year decline in coal handled by its ports.
The tepid volume growth in FY16 was accompanied by higher debt due to increase in capex and loans and advances.
For the year ended March 2016, APSEZ reported 23.90 per cent rise in its consolidated net profit figures at Rs 2,867.36 crore against Rs 2,314.33 crore last year.
(With agency inputs)