Adani Ports Q1 FY24 results: Revenue and EBITDA surge by 24% and 80% respectively

Adani Ports and Special Economic Zone Ltd (APSEZ), an influential entity of the globally-recognized Adani Group, has released its financial outcomes for Q1 FY24, which concluded on 30 June 2023. The findings showcased a robust 24% Y-o-Y surge in revenue, reaching Rs 6,248 Cr. Additionally, the EBITDA saw an astounding 80% Y-o-Y hike, settling at Rs 3,765 Cr. The profit after tax (PAT) too, paralleled this growth trajectory, registering an 80% Y-o-Y climb and summing up to Rs 2,119 Cr.

On the operational front, Adani Ports and Special Economic Zone celebrated remarkable achievements. The company reported a 12% Y-o-Y amplification in cargo volume, surpassing the 101 MMT mark. This impressive figure can be attributed predominantly to a 15% escalation in containers. Further solidifying its stance in the Indian market, Adani Ports and Special Economic Zone augmented its national market share by approximately 200bps, bringing it to an impressive 26%. Not to be overshadowed, the domestic cargo volumes too exhibited an upward trend, reflecting an 8% Y-o-Y growth. This figure is nearly thrice that of India’s cargo growth rate observed during the corresponding period.

Discussing the evolutions in the Indian port sector, Adani Ports and Special Economic Zone has been at the forefront, establishing an industry-benchmarked average turnaround time (TAT) for ships at an impressive approximate of 0.7 days. As for the forecasts for FY24, the company anticipates its cargo volumes to swing between 370-390 MMT. This might translate to a revenue spectrum of Rs 24,000-25,000 Cr and an EBITDA estimation ranging between Rs 14,500-15,000 Cr. The expected capex for the upcoming year is projected to lie in the Rs 4,000-4,500 Cr bracket.

Delving deeper into the intricacies of Q1 FY24, the firm’s cargo volume growth was fueled by varying sectors: containers saw a +15% growth, dry cargo enjoyed a +10% uptick, and liquids, excluding crude, marked a +7% rise. In terms of strategic moves, Adani Ports finalized the takeover of Karaikal Port and divested its asset in Myanmar. Adding another feather to its cap, Vizinjham, set to be India’s most expansive transshipment port, is on track to kick-start its operations by the end of the year.

In light of these accomplishments, Karan Adani, the CEO and Whole Time Director of Adani Ports and Special Economic Zone, shared his insights. He highlighted that APSEZ manifested its most robust quarterly operational display during Q1 FY24. The quarter witnessed unparalleled highs in terms of cargo volumes, revenue, EBITDA, and a near 200bps elevation in domestic market share. This success was achieved even though more than half of the company’s total port capacity was detrimentally affected for around six days due to Cyclone Biparjoy.