Adani Ports Q1 results: PAT drops 16% to ₹1,072 cr, revenue rises 21% sequentially

Consolidated revenue from operations stood at ₹4,637.95 crore in Q1FY23 rising by 20.62% from ₹3,845.03 in the preceding quarter. The revenue was flat compared to ₹4,671.19 crore in Q1FY22.

In its audit report, Adani Ports highlighted that consolidated revenue (excluding Gangavaram) was almost flat Y-o-Y at ₹4,638 crore, given the ₹725 crore decline in revenue from the SEZ business segment. It said, “This decline is well in line with our expectation and is factored in our full-year guidance for FY23.”

During Q1FY23, consolidated EBITDA (excluding Gangavaram) grew by 11% to ₹3,005 crore on the back of revenue growth for the Ports and Logistics business. Notably, the company’s Ports EBITDA grew 18% to ₹2,885 crore on the back of growth in port revenues. While logistics business EBIDTA grew by 56% to ₹96 crore and the margin expanded by 370 bps to 27%. This was aided by an increase in cargo volumes, cargo diversification, elimination of loss-making routes, and operational efficiency measures.

“Q1 FY23 has been the strongest quarter in APSEZ’s history, with a record cargo volume and highest ever quarterly EBITDA. This is a 11% jump on a robust performance in the corresponding quarter last year that witnessed the postCovid demand surge,” said Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone.

In Q1FY23, the company handled 90.89 MMT of cargo (including 9.09 MMT at Gangavaram Port), which is ~8% Y-o-Y growth. The strong performance was led by dry cargo (+11.2% increase), followed by containers (+3.2%), and liquids including crude (+5.6%). The automobile segment, though a small proportion of overall volumes, saw a 120% jump in volumes.

Meanwhile, Adani Logistics registered a 31% Y-o-Y growth in rail volume to 111,136 TEUs and a 54% Y-o-Y growth in terminal volume to 99,217 TEUs.

The company commissioned two new terminals, one MMLP, three new agri-silo storage terminals, and 0.6 Mn sq. ft warehousing capacity in Q1 to further boost growth.

Karan added, “The company continued this strong performance in July and recorded 100 MMT of cargo through-put in the initial 99 days of FY23, a feat never achieved before.”

Further, Karan added, “Our strategy of connecting port gate to customer gate through an integrated utility model is starting to yield results,” adding, “We are confident of achieving our full-year guidance of 350-360 MMT cargo volumes and EBITDA of ₹12,200-12,600 Cr. APSEZ remains committed to its philosophy of ensuring sustainable growth in partnership with our key stakeholders.”

On BSE, Adani Ports was trading at ₹801.10 apiece down by 1.10% at around 2.59 pm. The company’s market valuation is around ₹1,69,222.22 crore.

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