Adani Ports Q1 Results: PAT Jumps 83% YoY To Rs 2,115 Crore, Revenue Up 24%

Adani Group's port flagship, Adani Ports earned a consolidated net profit of Rs 2,115 crore for the quarter ending June 30, 2023 (Q1FY24), registering a growth of a whopping 83% from a profit of Rs 1,158 crore recorded in Q1 of the previous fiscal. The top line also posted robust double-digit growth in the quarter, while EBITDA zoomed 80% YoY. The company's market share in India zooms by 200 bps to 26%.

Consolidated revenue from operations stood at Rs 6,248 crore during the quarter, up by 24% from Rs 5,058 crore in Q1 of the previous fiscal.

The overall earnings have surpassed expectations.

Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone said, "APSEZ delivered its strongest ever quarterly operating performance during Q1 FY24, with highest ever quarterly cargo volumes, revenue, EBITDA and around 200bps jump in domestic market share, despite over 50% of the company's total port capacity being adversely impacted for around 6 days due to the cyclone Biparjoy."

Adani Ports has touched key operational milestones. These are:

- APSEZ recorded its highest-ever quarterly port cargo volumes at 101.4 MMT in Q1 FY24, reflecting a healthy 12% Y-o-Y jump

- APSEZ's domestic cargo volumes recorded an 8% Y-o-Y increase, which is ~3x India's cargo volume growth rate in the same period

- APSEZ's market share in India increased to 26% in Q1 FY24, a jump of 200 basis points.

- Mundra handled 1.72 Mn TEUs in Q1 FY24, which is 12% higher than its closest competitor

- Krishnapatnam Port recorded strong volumes by handling 5 MMT cargo volumes in all the three months of the quarter

Further, Karan added, "Our continuous efforts on improving operational efficiencies have resulted in domestic ports business EBITDA margin of 72% and logistics business EBITDA margin of 28%, which is higher than the reported margins of listed peers from India. Our newly acquired assets, Haifa Port and Karaikal Port, have ramped up well with monthly cargo volumes now touching 1 MMT mark at the two ports. With our cargo volumes crossing 100 MMT during the quarter, we are well on course to achieve our FY24 cargo volume guidance of 370-390 MMT."

With industry leading average turnaround time (TAT) for ships at ~0.7 days, APSEZ has been a benchmark for other Indian ports and have driven the improvement in the TAT of major ports from ~5 days in 2011 to ~2 days currently, it added.

In its guidance for FY24, Adani Ports expect cargo volumes to be at 370-390 MMT resulting in a revenue of Rs 24,000-25,000 crore and EBITDA of Rs 14,500-15,000 crore. Total capex during the year is expected to be Rs 4,000-4,500 crore.

On BSE, Adani Ports share price closed at Rs 784.35 apiece, down by 0.92%.