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Adani Ports Reported Fiscal 2018 Results In Line With Expectations Says Moody’s

By Staff

Moody's Investors Service, a global rating agency, said that Adani Ports and Special Economic Zone Limited's (APSEZ) (Baa3 stable) results for fiscal 2018 are within Moody's expectations.

Adani Ports Reported Fiscal 2018 Results In Line With Expectations Says Moody’

In fiscal 2018, APSEZ's reported revenue of Rs 113 billion, up by 34 percent year-on-year (YoY) basis.

The reported EBITDA saw an increase by 32 percent YoY basis and now stands at INR 72.1 billion.

The ports business revenue and EBITDA in fiscal 2018 witnessed growth of 7 percent and 10 percent respectively.

"Fiscal 2018 performance for APSEZ was driven by 7 percent year on year (YoY) growth in cargo volumes and a strong 5.4x growth in Special Economic Zone (SEZ) income compared to fiscal 2017," says Abhishek Tyagi, a Moody's Vice President, and Senior Analyst.

The 7 percent YoY growth in traffic to 180 million tonnes in fiscal 2018 was mainly contributed by a strong 20 percent YoY growth in container traffic which represented 41 percent of the total volumes. Such performance is in line with the company's strategy of reorienting its volume away from coal volumes.

Based on APSEZ's fiscal 2018 results, its estimated financial leverage, as measured by FFO/debt was around 22% and the FFO interest coverage stood at approximately 5.4x for fiscal 2018. These ratios are based on reported results and do not reflect Moody's standard adjustments but includes the outstanding amount of a debt facility to Australian entity Mundra Port Pty Ltd (MPPL) and guaranteed by APSEZ, said the rating agency.

Over a period of next 12-18 months, Moody's expect APSEZ's FFO/debt ratio to be in the range of 15 percent -20 percent, providing support for APSEZ's credit profile.

The Adani Ports also stated that the Profit after Tax would have been higher but for higher tax incidence to Rs 1,544 crore in fiscal 2018 from Rs 287 crore in fiscal 2017. This is because Mundra port has come out of tax holiday period. However, from cash flow angle there is no incremental impact as the company has MAT credit entitlement. The MAT credit as on March 31, 2017, was Rs 2,685 crore against of March 31, 2018, the balance MAT credit is Rs 2,025 crore.


The shares of the Adani Ports were trading at Rs 412.25, up by 0.99% in BSE at 3:30 pm (IST).

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