Adani Ports gains after stellar Q1 performance


Adani Ports and Special Economic Zone added 2.16% to Rs 707 after the company reported 77% jump in consolidated net profit to Rs 1,342 crore on a 99% increase in consolidated revenue to Rs 4,557 crore in Q1 FY22 over Q1 FY21.

The increased revenue was on account of an increase in cargo at port by 83%, rail volume by 10%, and terminal volume by 13% in the logistics business.

APSEZ handled 76 MMT of cargo in Q1 FY22 compared to 41 MMT in Q1 FY21, registering a growth of 83% compared to 33% growth registered by All India cargo. This was on account of continued focus on handling multi commodities across various ports.

The company’s market share in All India cargo increased by 310 bps to reach 28.6% while its market share in the container segment increased by 163 bps to 42.7% in Q1 FY22 over Q1 FY21.

Consolidated EBITDA was at Rs 2,620 crore, registering a growth of 82% on a YoY basis. This was mainly due to increased cargo volume, savings in operating cost, and operational excellence.

Profit before tax in Q1 FY22 stood at Rs 1,513 crore, up by 60% from Rs 943 crore in Q1 FY21.

In July 2021, as part of the capital management plan, Adani Ports and Special Economic Zone (APSEZ) successfully issued $750 million of dual-tranche 10.5-year and 20-year unsecured bonds in global capital markets. APSEZ became the only infrastructure company in India to successfully place a 20-year paper, an achievement that reinforced its unique business model underscoring the strength of its strong fundamentals.

With this issuance, APSEZ has given a longer yield curve to investors and elongated its debt maturity to over seven years.

The operations of the company continued to benefit from its networked economies of scale and the digitization initiatives that the company has been investing in over the past several years.

Karan Adani, chief executive officer and whole time director of APSEZ, said: “Our strategy of establishing a network of world-class ports to balance cargo across the east and west coast has been tracking precisely as per plan, thereby continuing to de-risk our growth as well as lay the foundation of a broader logistics platform. This has resulted in APSEZ accelerating its market share gain.

We have therefore raised our target cargo volumes to 350-360 MMT, which translates to unprecedented YoY growth of about 45%.”

Adani Ports has also raised its consolidated revenue guidance to Rs 18,000 crore – Rs 18,800 crore from Rs 16,000 crore – Rs 16,800 crore given earlier, representing a growth of 50%.

Accordingly, the consolidated EBITDA is now expected to be Rs.11,500 crore – Rs.12,000 crore as compared with an earlier guidance of Rs 10,200 crore – Rs 10,700 crore, representing a growth of 49%.

Adani Ports and Special Economic Zone (APSEZ), a part of globally diversified Adani Group, has evolved from a port company to ports and logistics platform for India.