APSEZ's Mundra Port in Gujarat
APSEZ's Mundra Port in Gujarat

Adani Ports reports 65% growth in Q2 PAT, record revenue and EBITDA

Ahmedabad, November 1, 2022

Adani Ports and Special Economic Zone Limited (APSEZ), India's largest transport utility and a part of the Adani Group, today reported a 65 per cent increase in its profit after tax (PAT) to Rs 1,738 crore in the second quarter of FY23 as compared to Rs 1,050 crore in the same period of the previous financial year.

The company said it had also achieved a quarterly cargo of 86.6 million metric tonnes (MMT), a 15% growth year-on-year (y-o-y) over 75.5 MMT in the same quarter of last year and a revenue increase of 33% y-o-y to Rs 5,211 crore in Q2 FY 23 from Rs 3,923 crore in Q2 FY 22.

EBITDA for the quarter stood at Rs 3,260 crore, 31% higher than the level of Rs 2,483 crore recorded in the same quarter of FY 22, the company said in a press release announcing its financial results for the first half of FY 2023.

The EBITDA excludes forex mark-to-market loss of Rs 370 crore in current period and Rs 53 crore of forex gains in FY22, the release said.

“H1 FY23 is a record half-year in APSEZ’s history, with the highest ever cargo volume, revenue and EBITDA. Extending this strong performance into October, APSEZ achieved 200 MMT of cargo throughput within seven months, another new milestone,” said Karan Adani, CEO and Whole Time Director of APSEZ.

For H1 FY23, the record cargo volumes have resulted in a 24% Y-o-Y jump in Port EBITDA, while the EBITDA of the logistics business jumped 57% Y-o-Y. The margin expansion of the logistics segment continued with a 470 bps Y-o-Y jump on the back of better utilization of assets and increased share of the GPWIS revenue stream, the release said.

The volume growth will be further fuelled by the recently commissioned facilities of APSEZ, which include the 6-lakh TEU container terminal facility at Gangavaram, and liquid storage tanks at Katupalli, that have a Take-or-Pay contract.

The scheduled commissioning of 5 MMT LNG terminal in Dhamra by the year end (with a Take-or-Pay contract) is another growth catalyst, it said.

The company said its logistics business is set to continue growing with improved utilization of assets, particularly the Kila Raipur MMLP, where the operations were restarted in Dec 2021, and (the assets commissioned in H1 FY23, which include the Taloja MMLP, three agri-silo terminals, warehousing capacity of 0.6 Mn sq. ft, six new trains and 900 trucks. The successful integration of MMLP Tumb with Adani Logistics (ALL) in October and addition of more trains during H2 FY23 will also add material volumes, it said.

"In the current financial year, APSEZ signed a concession agreement for berth mechanization at Haldia port taking our India footprint to 13 locations. We also received a LOI for the Tajpur Port, a greenfield development that we expect to commission in the next 5 years. Adani Agri Logistics (ALL) received a LOA from the Food Corporation of India (FCI) to build four silos, which will take our total silo capacity to 1.53 MMT and enable our presence across 24 locations. ALL has also been shortlisted as the H1 bidder for Loni ICD, which will take our total MMLP count to 10," the release said.

“APSEZ remains committed to its philosophy of ensuring sustainable growth in partnership with our key stakeholders. We are on track to achieve our full year guidance of 350-360 MMT cargo volumes and EBITDA of Rs 12,200-12,600 crore,” added Karan Adani.

The release said that, during H1 FY23, APSEZ handled 177.5 MMT of cargo which is 11% Y-o-Y growth.

The growth in cargo volume was led by dry cargo (+18% increase), and containers (+5%). The automobile segment, though a small proportion of overall volumes, saw a 35% jump in volumes.

The non-Mundra ports volumes grew at 14% Y-o-Y while Mundra growth rate was 7.5%; the non-Mundra ports contributed 54% to the cargo basket.

Mundra continues to be the largest container handling port with 3.28 million TEUs versus 2.96 million TEUs managed by JNPT during the first half of the year.

Adani Logistics registered a 24% Y-o-Y growth in rail volume to 222,944 TEUs and a 43% Y-o-Y growth in terminal volume to 192,039 TEUs.

The GPWIS cargo volumes almost doubled to 6.27 MMT on Y-o-Y basis. Operational MMLP count increased to nine with the recent addition of Tumb MMLP.

Construction initiated on total of ~ 10 million sq. ft of warehousing capacity across seven locations, and two Agri container terminals in Bihar (Darbhanga and Samastipur).

Given the placed orders for 82 more trains, the total train count at APSEZ is set to increase from 81 to 163. Trucks count increased to 900 (740 for container movement and 160 tippers).

Consolidated revenue (including Gangavaram) grew by 15% y-o-y to Rs 10,269 crore, despite the Rs 555 crore decline in revenue from the SEZ business segment, which is also factored in the company's full-year guidance for FY23.

Cargo volume growth, improved realization, and addition of OSL enabled port revenue increase of 25% to Rs 8,967 crore, the release said.

Revenue from the logistics business stood at Rs 721 crore, a growth of 32% on account of improving container and terminal traffic, and also the bulk segment with overall increase in the rolling stock.

Consolidated EBITDA (including Gangavaram) grew by 21% to Rs 6,551 crore on the back of revenue growth for the Ports and Logistics business. Ports EBITDA grew 24% to Rs 6,236 crore on the back of growth in port revenues. Logistics business EBIDTA grew by 57% to Rs 212 Cr, and the margin expanded by 470 bps to 29.4%. This was aided by increase in cargo volumes, cargo diversification, elimination of loss- making routes and operational efficiency measures, the company said.


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