APSEZ Declares Q4 Results: Net Profit up Rs1158.9 Cr

Registers 5.1% Y-o-Y increase, Revenue and EBITDA Jump Over 20% In FY23, Acquiries six ports with an investment of 18,000 cr

Padmesh Prabhune

The Adani Ports and Special Economic Zone Ltd (“APSEZ”), on May 30th announced its results for the fourth quarter and year ended 31 March 2023.

The company posted 5.1 percent year-on-year increase in consolidated net profit of Rs 1158.9 crores for the fourth quarter ending 31 March 2023 as compared to Rs 1103 crores in the corresponding quarter last year.

“FY23 has been a stellar year for APSEZ in operational as well as financial performance. The company has overachieved against its highest-ever revenue and EBITDA guidance provided at the beginning of the year. Our strategy of geographical diversification, cargo mix diversification, and business model transition to a transport utility is enabling robust growth”, said Mr. Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone.

In the March quarter the total revenue stood at Rs 5,797 crores, up 40 percent as compared to Rs4140.8 crores in the corresponding period for last year.

Over the last 5 years, APSEZ’s revenue and EBITDA have grown at a CAGR of 16-18%, while the company’s domestic market share jumped 800bps to ~24% in FY23.

APSEZ did record investments of around Rs 27,000 Cr in FY23, which include six major acquisitions totaling around Rs 18,000 Cr and organic capex of around Rs 9,000 Crs. These investments were primarily financed through internal accruals and the cash and cash equivalents held with the company.

As a result, gross debt to fixed asset ratio has declined sharply from 80% in FY19 to around 60% in FY23. The investments made along with the five bid wins during the year, will enable APSEZ to achieve its targeted cargo volumes of 500 MMT in 2025 and speed up the transition of the business model to a transport utility” added Mr. Karan Adani.

During the year APSEZ recorded its highest-ever port cargo volumes at 339 MMT in FY23, 9% Y-o-Y jump. APSEZ handled 300 MMT of cargo in just 329 days, surpassing the previous benchmark of 354 days in FY22

Mundra continues to be the largest commercial port of India with cargo volumes of 155 MMT (150 MMT achieved in record 355 days vs 365 days in FY22)   and remains to be the largest container handling port with 6.64 Mn TEUs in FY23 Logistics rail volumes crossed a milestone of 500,000 TEUs during the year.

GPWIS cargo volumes grew by 63% Y-o-Y to 14.35 MMT

Mundra and Krishnapatnam Ports saw the arrival of the largest ships while seven ports/terminals handled the largest parcel size vessels of their lifetime in FY23

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.

ASPEZ completed six acquisitions (Haifa Port Company, Gangavaram Port, Karaikal Port, IOTL, Ocean Sparkle, and ICD Tumb) during the year implying an investment of around to Rs 18,000 Cr. The total capex during the year was around Rs 9,000 Cr.

–Marex Media