Adani Ports and Special Economic Zone Ltd. (Adani Ports) made a positive opening the following trading session after reported record revenue, EBITDA, and profit numbers. Adani Ports has evolved from a port company to an integrated transport utility, providing an end-to-end solution from its port gate to the customer gate. It is the largest port developer and operator in India, with six strategically located ports and terminals on the west coast and six ports and terminals on the east coast of India. The company is also developing two transshipment ports at Vizhinjam, Kerala, and Colombo, Sri Lanka. According to Adani Ports’, its recent acquisition of Karaikal port is complete, and the port is ramping up well, with monthly cargo volumes now touching the 1 MMT mark, along with the newly acquired Haifa port.
Starting with the operation at port level, companies’ market share in India jumps around 200 basis points to 26%. The company reported the highest-ever quarterly port cargo volume growth from 90.9 MMT in Q12023 to over 101.4 MMT in Q12024 (representing a 12% Y-o-Y). Mundra port handled 1.72 Mn TEUs (twenty-foot equivalent units) in Q1 FY24, while volumes were down 2% Y-o-Y due to cyclone ‘Biparjoy’. According to the company, container capacity expansion of 0.8 MTEUs to be completed by Q3 FY24 at Mundra port, and five new railway handling lines are being added to augment the container handling capacity by 30%.
The non-Mundra domestic port volumes grew by 17% Y-o-Y, while the share of non-Mundra domestic ports increased to 58% in the cargo basket from 53% during Q1 FY23. Krishnapatnam Port recorded strong volumes by handling 5 MMT cargo volumes in all three months of the quarter. Domestic cargo volumes recorded an 8% Y-o-Y increase, which is 3x India’s cargo volume growth rate in the same period. Growth in cargo volume was led by containers (+15%), dry cargo (+10%), and liquids, excl. crude (+7%).
Logistics rail volumes recorded a growth of 18% Y-o-Y to 131,420 TEUs. General Purpose Wagon Investment Scheme cargo volumes grew by 40% Y-o-Y to 4.35 MMT. Total rake during the quarter increased to 95 (container: 43, GPWIS: 42, agri: 7, AFTO: 3) vs. 93 as of the end of March.
Companies’ consolidated operating revenue grew by 24% Y-o-Y to Rs 6,248 crore. The company reported an 82.57 percent y-o-y rise in consolidated net profit at Rs 2,114.72 crore in the latest quarter. Ports business EBITDA margin expanded by 150 basis points to 72% with improved realization and operating efficiencies. Logistics business EBIDTA margin expanded by 150 basis points to 28%, aided by an increase in cargo volumes and the sweating of assets.
|Total Income Growth (%)||7.32||22.33||-10.58||10.78||15.42|
|Total Expenses Growth (%)||-26.09||56.2||-6.34||-10.76||34.13|
|EBIT Growth (%)||108.43||-26.14||-16.03||60.48||-12.67|
|Profit after Tax (PAT)||2,114.72||1,158.88||1,315.54||1,677.48||1,072.38|
|PAT Growth (%)||82.48||-11.91||-21.58||56.43||4.72|
|EBIT Margin (%)||48.24||24.84||41.14||43.8||30.24|
|Net Profit Margin (%)||31.89||18.75||26.04||29.7||21.03|
A message from CEO and Whole Time Director of Adani Ports, Mr. Karan Adani, said that the company delivered its strongest ever quarterly operating performance, despite over 50% of the company’s total port capacity being adversely impacted for around 6 days due to the cyclone Biparjoy. "Their continuous efforts on improving operational efficiencies have resulted in domestic ports business EBITDA margin of 72% and logistics business EBITDA margin of 28%.
Guidance for FY24: Cargo volumes are expected at 370–390 MMT, resulting in a revenue of Rs 24,000–25,000 crore and an EBITDA of Rs 14,500–15,000 crore. Total capex during the year is expected to be Rs 4,000–4,500 crore. The company expects net debt to EBITDA to be reduced to 2.5x.
The stock was trading in green at the time of reporting at Rs. 785 per share.