10-Nov-2023
2 mins read
Adani Ports and Special Economic Zone, India’s leading private port operator, recently disclosed its financial results for the second quarter, with noteworthy increases in both profit and revenue. The following are the key aspects of their report:
Profit and Revenue Growth
In the September quarter, Adani Ports posted a consolidated net profit of Rs 1,748 crore, marking a 4.2% YoY growth. This robust performance was complemented by a substantial 27.6% surge in revenue from operations, totalling Rs 6,646.4 crore.
Cargo Handling
Adani Ports managed an impressive cargo volume, with a total of 101.2 million tonnes (mt) handled in the quarter, representing a 17% YoY increase. Among the standout figures, container volumes showed remarkable growth, up by 24%. Mundra Port, the company’s flagship, handled 44.4 mt of cargo, while non-Mundra ports efficiently managed 53.7 mt.
Regional Insights
Geographically, Adani Ports’ East Coast ports facilitated 40.2 mt of cargo, reflecting a significant 17% growth compared to the previous year. Meanwhile, West Coast ports experienced a respectable 11% growth, handling 57.9 mt of cargo.
Drivers of Growth
The growth in the quarter varied across ports and cargo types. At Mundra, container cargo was the primary driver, followed by crude, gas, and coal. Dhamra saw growth fueled by minerals, crude, and gas, while Hazira’s success was attributed to container cargo. For Gangavaram and Krishnapatnam, minerals cargo played a pivotal role.
Financial Metrics
The EBITDA for Q2 FY24 amounted to Rs 3,880 crore, a substantial increase from Rs 3,260 crore in Q2 FY23.
Half-Year Performance
Over the H1 FY24, Adani Ports posted a 26% increase in consolidated operating revenue, reaching Rs 12,894 crore. The EBITDA for the H1 period was Rs 7,634 crore. Notably, the EBITDA margin for the ports business expanded by 220 basis points (bps) to 72%, driven by improved realization and operating efficiencies.
Cargo Handling Outlook
In the period from April to September, Adani Ports effectively managed 240 million tonnes of cargo. The company’s full-year guidance is even more promising, with expectations to handle between 370-390 mt of cargo.
Debt Position
Adani Ports ended the quarter with a gross debt of Rs 47,177 crore, indicating a stable financial position.
Market Response
Despite the strong financial performance, Adani Ports’ stock ended 1.5% lower, which was below the expectations of the market. Adani Ports and Special Economic Zone, with its
significant portfolio of 14 ports and a substantial share in India’s total port cargo, remains a prominent player in the private port operation sector in India. The company’s consistent growth and ambitious cargo-handling targets reaffirm its leadership in the industry.