Adani Ports & Special Economic Zone Ltdis the largest commercial port operator with over 12 domestic ports across Gujarat, Goa, Kerala, Maharashtra, Andhra Pradesh, Odisha, and Tamil Nadu. It is responsible for about a quarter of India’s overall freight traffic.
The company has developed into an integrated logistics platform from a single port dealing in a particular product.
- The port operations of APSEZ produce almost 70% of its total revenues. Harbour (11%), logistics (7%), and others lead the rest.
- Container quantities account for 105 MT (43% of the total 247 MT cargo volume in FY21), bulk volumes for 110 MT (44%), and liquid volumes for the remaining 32 MT (13%).
In 2017, Adani Ports acquired TM Harbour Services Private Limited. In the same year, it raised Rs. 3,222.5 crore through Bonds denominated in foreign currencies. In 2019, it also bought a 40.25% interest in Snowman Logistics.While writing, the Adani Port share price is Rs. 816.80 and stands at a market capitalisation of Rs. 172,559.75 crore.
Now, the following are theessential highlights related to Adani Ports & Special Economic Zone Ltd:
- Q4FY22 quarterly results were:
- Cargo volume jumped 26%, leading to record revenue and EBITDA.
- It reached a total cargo volume of 312 MMT, a 26% YoY increase.
- The record-breaking transition from 200 MMT to 300 MMT happened in three years.
- While maintaining the credit quality, Rs. 11,400 crore worth of acquisitions were made.
- There has been a consolidated increase in revenue by 27% to Rs. 15,934 crore. (excludingGangavaram) due to balanced growth experienced by three crucial business segments: port, logistics, and SEZ.
- The increase in cargo volume, better realisation, and the addition of SRCPL allowed port revenue to rise by 21% to Rs. 12,964 crore.
- Revenue from the logistics industry reached Rs. 1,208 crore, an increase of 26%, due to better container and terminal traffic and more rolling stock made available for both containerised and bulk freight.
- Consolidated EBITDA (excluding Gangavaram) increased by 22% to Rs. 9,811 crore. revenue increased by 27%.
- Port EBITDA increased 21% to Rs. 9,120crore as port revenues increased.
- The margin for the logistics sector increased by 283 bps to 26%, and EBIDTA increased by 41% to Rs. 320 crore.
- APSEZ is starting a Capex project for $23,000 crore that will handle infrastructure needs after the 500 MMT target reaches.
- The company has shown a solid ability to generate cash from crucial businesses that have improved their cash flow over the past two years.
- Another positive aspect is that the company has generated revenue in the previous three quarters.
- The book value per Adani Port share price has increased for the last two years.
Conclusion
It is expected that Adani Ports & Special Economic Zone can gain the loyalty and larger wallet share of its clients’ thanks to a diverse cargo mix (38%, 50%, and 12% for the container, bulk, and liquid, respectively, in FY22), overall leadership in Indian ports (extended market share among western ports while eastern side remains competitive), and development of strength in verticals like logistics and warehousing.
