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India's Adani Ports misses profit forecasts for Q3 as cargo growth slows

Adani Ports and Special Economic Zone in India missed its third-quarter profit estimate on Thursday. The company was hit by a slower pace of cargo growth amid a wider slowdown in India's fifth largest economy.

LSEG data shows that the top private port operator in the country saw its net profit jump 14%, to 25,20 billion rupees (US$291.1 million), for the quarter ending Dec. 31. However, it fell below the average analyst estimate of 26,08 billion rupees.

Adani Ports cargo volumes grew 4% during the quarter reported, slower than growth of 10% in the two previous quarters and 7.5% in the quarter before that. The growth rate was 44% in the quarter prior.

Analysts at ElaraCapital say that India's slowing economy has reduced cargo volumes at port operators such as Adani Ports, and its smaller rival JSW Infra.

JSW Infra, a major infrastructure company, missed its third-quarter profit estimate earlier this week as lower iron ore exports from its eastern port capped the volume growth, which was at its lowest in the past four quarters. ($1 = 86.5620 Indian rupees) (Reporting by Hritam Mukherjee in Bengaluru; Editing by Rashmi Aich)

(source: Reuters)