Adani Ports and Special Economic Zone Q2 Results FY2023, Net Profit at Rs. 1738 crores

On 1st November 2022, Adani Ports and Special Economic Zone announced its quarterly results for the second quarter of FY2023.

Q2FY23 Performance updates:

- Consolidated revenue (including Gangavaram) grew by 15% YoY to Rs 10,269 Crores, despite the Rs 555 Crores decline in revenue from the SEZ business segment, which is also factored in our full year guidance for FY23.
- Consolidated EBITDA (including Gangavaram) grew by 21% to Rs 6,551 Crores on the back of revenue growth for the Ports and Logistics business.  
- Ports EBITDA grew 24% to Rs 6,236 Crore on the back of growth in port revenues.
- PAT increase of 65% YoY to Rs 1738 Crore in Q2 FY23

Business Highlights:

- During H1 FY23, APSEZ handled 177.5 MMT of cargo which is 11% YoY growth.  The growth in cargo volume was led by dry cargo (+18% increase), and containers (+5%). The automobile segment, though a small proportion of overall volumes, saw a 35% jump in volumes.
- The non-Mundra ports volumes grew at 14% YoY while Mundra growth rate was 7.5%; the non-Mundra ports contributed 54% to the cargo basket.  
- Mundra continues to be the largest container handling port with 3.28 Million TEUs versus 2.96 Million TEUs managed by JNPT during the first half of the year. 
- Adani Logistics registered a 24% YoY growth in rail volume to 222,944 TEUs and a 43% YoY growth in terminal volume to 192,039 TEUs.  
- The GPWIS cargo volumes almost doubled to 6.27 MMT on YoY basis
- Construction initiated on total of about 10 Million sq. ft of warehousing capacity across seven locations, and two Agri container terminals in Bihar (Darbhanga and Samastipur).  Given the placed orders for 82 more trains, the total train count at APSEZ is set to increase from 81 to 163.  Trucks count increases to 900 (740 for container movement and 160 tippers). 
- Logistics business EBIDTA grew by 57% to Rs 212 Crore, and the margin expanded by 470 bps to 29.4%. This was aided by increase in cargo volumes, cargo diversification, elimination of loss- making routes and operational efficiency measures. 
- Adani Ports and Gadot Group consortium (70:30 partnership) won the bid for acquisition of 100% stake in Haifa Port Company acquisition at a bid value of NIS 3.9 Billion (~USD 1.13 Billion)
- APSEZ has acquired 100% stake in Ocean Sparkle Ltd (OSL).  OSL is India’s leading third-party marine services provider with 94 seaworthy vessels at its disposal, including 75 Tugs.
- Post approval from NCLT in October, Gangavaram Port Limited (GPL) is now fully integrated with APSEZ.  The acquisition of GPL is priced at around Rs 6,200 Crore (517 million shares @ Rs 120/share).