Adani Ports Net Profit Rises 3% To Rs 1,141 Crore In March Quarter

Billionaire Gautam Adani-backed Adani Ports and Special Economic Zone (APSEZ) on Tuesday reported net profit of Rs 1,141 crore for the quarter ended March 2023, marking an increase of 3 per cent from profit of Rs 1,112 crore during the same period last year.

Adani Ports' revenue from operations rose 40 per cent to Rs 5,797 crore in the fourth quarter of last financial year from Rs 4,140 crore during the same period a year ago.

"FY23 has been a stellar year for APSEZ in operational as well as financial performance. The company has overachieved against its highest-ever revenue and EBITDA guidance provided at the beginning of the year. Our strategy of geographical diversification, cargo mix diversification, and business model transition to a transport utility is enabling robust growth," said Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone. 

"Over the last 5 years, APSEZ’s revenue and EBITDA have grown at a CAGR of 16-18%, while the company’s domestic market share jumped 800bps to ~24% in FY23. APSEZ did record investments of around Rs 27,000 Cr in FY23, which includes six major acquisitions totaling around Rs 18,000 Cr and organic capex of around Rs 9,000 Crs. These investments were primarily financed through internal accruals and the cash and cash equivalents held with the company. As a result, gross debt to fixed asset ratio has declined sharply from 80% in FY19 to around 60% in FY23. The investments made along with the five bid wins during the year, will enable APSEZ to achieve its targeted cargo volumes of 500 MMT in 2025 and speed up the transition of the business model to a transport utility,” Adani added.

During the quarter, company won a total of five bids during the year including two in ports business (mechanization of Berth 2 at Haldia Port and greenfield construction of Tajpur Port) and three in logistics business (Loni ICD, Valvada ICD and 70 agri silos with cumulative capacity of 2.8 MMT), the company said in a press release.

The company has guided for cargo volumes growth of at 370-390 MMT resulting in a revenue of Rs 24,000-25,000 crore and EBITDA of Rs 14,500-15,000 crore and total capex during the year is expected to be Rs 4,000-4,500 crore.

Adani Ports shares ended 0.43 per cent higher at Rs 734 ahead of its earnings announcement.