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Ahmedabad (Gujarat) : Adani Ports and Special Economic Zone Ltd (“APSEZ”), today announced its results for the third quarter and nine months ended 31 December 2022.
With the highest ever revenue and EBITDA over a nine-month period, ASPEZ is well placed to achieve the upper end of its full year revenue and EBITDA guidance provided for FY23. The company also concluded the transactions of Haifa Port Company, IOTL, ICD Tumb, Ocean Sparkle, and Gangavaram Port, and is progressing well on transitioning its business model to a transport utility, said Mr. Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone.
Continuing with the growth journey, APSEZ is targeting FY24 EBITDA of Rs 14,500-15,000 Cr. Besides an estimated capital expenditure of INR 4,000-4,500 Cr, we are considering total loan repayment and prepayment of around Rs 5,000 Cr, which will significantly improve our Net Debt to EBITDA ratio and bring it closer to 2.5x by March 24” added Mr. Karan Adani.
Robust Operational Performance: During 9M FY23, APSEZ handled ~24% of the country’s total cargo and retained its leadership position of being the India’s largest port operator. Port EBITDA grew 20% Y-o-Y to Rs 9562 Cr, on the back of strong improvement in realizations and cargo volume growth. With port EBITDA margin at ~70%, APSEZ continues to be one of the most profitable port companies globally. Given our increased focus of providing supply chain solutions to our customers at their door step our logistics business segment is experiencing a phenomenal growth. EBITDA of logistics business segment jumped 66% Y-o-Y to Rs 354 Cr, supported by margin expansion of 400bps with improved utilization of assets and increased share of the GPWIS revenue stream.
Strong Capital Structure: APSEZ’s net debt to EBITDA ratio is well within our guided range of 3-3.5x, while our gearing ratio is below one. The performance across various debt covenants has been better than the desired levels. We have an impeccable track record of fulfilling our debt obligations, and our internal accruals enable us to meet the scheduled debt repayment for any of the financial years without any major challenges.
Well positioned for growth with multiple catalysts: We are confident of continuing our strong performance in the coming quarters given the presence of various catalysts, particularly the operational ramp up of facilities commissioned/acquired in the last few months:
- In the port business segment, the new additions include- (i) the Haifa Port Company in Israel (~20 MMT), (ii) new container terminal at Gangavaram (6 lakh TEU), (iii) liquid storage tanks at Katupalli, (iv) 5 MMT LNG terminal at Dhamra in April 2023, and (v) Karaikal Port (17.5 MMT), for which APSEZ has received the LoI, subject to NCLT approval.
- New assets in the logistics business segment include- (i) recently acquired ICD Tumb (one of India’s largest with a capacity of 0.5 MTEUs), (ii) Taloja MMLP, (iii) three agri-silo terminals, (iv) warehousing capacity of 0.6 Mn sq. ft, (v) 12 new trains and (vi) Kila Raipur MMLP, which restarted operations ~12 months back.
APSEZ handled 252.9 MMT of cargo which is 8% Y-o-Y growth. The growth in cargo volume was led by coal (+23% increase), liquid (excl. crude) (+8% increase) and containers (+5% increase). The automobile segment, though a small proportion of overall volumes, saw a 22% jump in volumes.
Mundra continues to be the largest container handling port with 4.88 Mn TEUs versus 4.45 Mn TEUs managed by JNPT during 9M FY23.
Mundra Port registered 100 MMT of cargo handling in 231 days. The port has shown the fastest growth in India’s ports sector surpassing all the Government as well as private commercial ports of India.
The non-Mundra ports volumes grew at 12% Y-o-Y while Mundra growth rate was 4%; the share of non-Mundra ports increased to 54% in the cargo basket from 52% during 9M FY22.
Logistics Business
Adani Logistics registered a 26% Y-o-Y growth in rail volume to 358,162 TEUs and a 31% Y-o-Y growth in terminal volume to 276,599 TEUs.
The GPWIS cargo volumes grew by 70% Y-o-Y to 9.73 MMT.
Total rakes count increases to 87 with the addition of 12 bulk trains during 9M FY23.
Bids Won
Mechanization of Berth 2 at Haldi Dock Complex
LOA from the Food Corporation of India (FCI) to build 70 silos, which would take our total silo capacity to 4 MMT
H1 bidder for Loni ICD and Valvada ICD, which will take our total MMLP count to 11.
LOI to develop a deep-sea port at Tajpur, West Bengal
Financial Highlights
Revenue
Consolidated revenue grew by 16% Y-o-Y to Rs 15,055 Cr.
Cargo volume growth, and improved realization enabled port revenue increase of 22% to Rs 12,903 Cr.
Revenue of the logistics business stood at Rs 1,211 Cr, implying a growth of 43% on account of improvement in traffic across all segments (Rail, Terminal, GPWIS scheme) coupled with acquisition of Tumb ICD.
EBITDA
Consolidated EBITDA grew by 19% to Rs 9,562 Cr on the back of revenue growth for the Ports and Logistics business and operational efficiency measures.
Ports EBITDA grew 20% to Rs 8,973 Cr on the back of growth in port revenues.
Logistics business EBIDTA grew by 66% to Rs 354 Cr, and the margin expanded by ~400 bps to 29.3%. This was aided by increase in cargo volumes, cargo diversification, and improved utilization rate.
APSEZ’s Risk Management Approach
During the last quarter, the Company has reassessed its risk management approach towards foreign currency exposure.
The Company has natural hedge i.e., sufficient future dollar linked revenue to meet the maturity date cash flows on debt in a financial year.
The Company has applied (i) active hedging and (ii) designation of the bonds against natural hedge from future revenues.
Pursuant to hedge designation, the company has recorded a part of the MTM FX losses amounting Rs 642 Cr (net of tax) directly in the Other Comprehensive Income, which will be moved to income statement in the year the designated forecasted sales occur.
Guidance for FY2023
Revenue of Rs 19,200 -19,800 Cr
EBIDTA in range of Rs 12,200-12,600 Cr
Net Debt to EBITDA in range of 3-3.5x
Guidance for FY2024
EBIDTA for the period to be Rs 14,500-15,000 Cr
Capex during the period to be Rs 4,000-4,500 Cr
Loan payments /prepayments of Rs 5,000 Cr (including bonds)
Net Debt to EBITDA to be reduced to ~2.5x
ESG Highlights
Moody’s ESG solutions has accorded first position to APSEZ in the global rankings for “Transport & Logistics” sector among emerging markets (Oct-22).
APSEZ’s ranks 1st among 59 Indian companies, and 9th rank among 844 companies in the Emerging Markets globally across all sectors/ industries, in Moody’s ESG assessment (Oct-22)
APSEZ was ranked amongst top 10 from 297 companies in the Global Transportation & Transportation Infra sector in the S&P Global Corporate Sustainability Assessment (Oct-22)
Sustainalytics has ranked APSEZ 4th among 45 companies in marine port sector globally. Overall, APSEZ is placed in top 96 percentile among companies across all the sectors globally
Intensity improvements: In 9M FY23, emission intensity reduction of 41% and water intensity reduction of 56% from the base year FY2016. The renewable electricity share of electricity in 9M FY23 is around 13%.
Progress on fuel switch: Out of 13 diesel cranes at Krishnapatnam Port, electrification of 4 was completed. Purchase order for 338 electric ITVs has been placed, out of which 304 nos. have been delivered.
Carbon offsetting: APSEZ issued fresh work orders for 800 Ha of mangrove plantation given the increase in its afforestation target to 5,000 Ha.
Net-zero planning process: We are formulating our net zero plan for submission to the Science Based Target Initiative (SBTi).
Awards
APSEZ was recognized by the Chief Minister of Gujarat for its initiative on plastic waste collection from the villages around Mundra and its sustainable disposal.
Adani Logistics has been awarded the ‘Best Rail Freight Service Provider’ and ‘Best Logistics Infrastructure and Service provider’ by the Government of India during the first-ever National Logistics Excellence Awards to private sector companies for its contribution in driving change and innovation in the logistics sector.
APSEZ Mundra received “Gold Award for Environment Improvement” from the Sustainable Development Foundation.
AVPPL received award under Environment Protection Category during the 22nd Greentech Environment Awards 2022
Dhamra Port won the “Annual Greentech Environment Award 2022”
MIDPL received 12th Exceed Energy Efficiency Award – Diamond Award.
Adani Ennore Container Terminal Pvt Ltd received the Platinum Award under Energy Efficiency category of ‘Apex India Green Leaf Award 2021’.
Adani Mormugao Port Terminal Pvt Ltd received the Gold Award under Energy Efficiency category from ‘Apex India Foundation’, Delhi.
Dahej Port received an award in the 4th Surat Chapter Convention on Quality Concepts (SCCQC-2022) and one gold award in the KAIZEN.
About Adani Ports & Special Economic Zone Ltd
Adani Ports and Special Economic Zone Ltd (APSEZ), a part of the globally diversified Adani Group has evolved from a port company to an Integrated Transport Utility providing an end-to-end solution from its port gate to customer gate. It is the largest port developer and operator in India with 6 strategically located ports and terminals on the west coast (Mundra, Dahej, Tuna and Hazira in Gujarat, Mormugao in Goa and Dighi in Maharashtra) and 5 ports and terminals on the East coast of India (Dhamra in Odisha, Gangavaram, and Krishnapatnam in Andhra Pradesh, and Kattupalli and Ennore in Tamilnadu) representing 24% of the country’s total port volumes, thus providing capabilities to handle vast amounts of cargo from both coastal areas and the hinterland. The company is also developing two transshipment ports at Vizhinjam, Kerala and Colombo, Sri Lanka. Our Ports to Logistics Platform comprising port facilities, integrated logistics capabilities including multimodal logistics parks, Grade A warehouses, and industrial economic zones, puts us in an advantageous position as India stands to benefit from an impending overhaul in global supply chains. Our vision is to be the largest ports and logistics platform in the world in the next decade. With a vision to turn carbon neutral by 2025, APSEZ was the first Indian port and third in the world to sign up for the Science-Based Targets Initiative (SBTi) committing to emission reduction targets to control global warming at 1.5°C above pre-industrial levels. For more information, please visit www.adaniports.com
Certain statements made in this press release may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Ports and Special Economic Zone Limited (“APSEZL”),the future outlook and growth prospects, and future developments of the business and the competitive and regulatory environment, and statements which contain words or phrases such as ‘will’, ‘expected to’, etc., or similar expressions or variations of such expressions. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in their business, their competitive environment, their ability to implement their strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This press release does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell, any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of APSEZL’s shares. Neither this press release nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of APSEZL.
APSEZL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this press release, unless otherwise specified is only current as of the date of this press release. APSEZL assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. APSEZL may alter, modify or otherwise change in any manner the content of this press release, without obligation to notify any person of such revision or changes.
No person is authorised to give any information or to make any representation not contained in and not consistent with this press release and, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of APSEZL.
This press release does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of its should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration therefrom.
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