Adani Ports Q1 Results: Net profit jumps 47% to Rs 3,113 crore, revenue up 11%
AHMEDABAD : Adani Ports and Special Economic Zones on August 1 reported a 47 percent on-year rise in its consolidated net profit to Rs 3,113 crore for the April-June quarter of fiscal 2024-25 (Q1FY25), helped by a Rs 600 crore gain from the disinvestment of stake in a container terminal subsidiary. The growth in net profit was also driven by a rise in total revenues.
The company had reported a net profit of Rs 2,115 crore in the April-June quarter last year.
The port operator’s revenue from operations in the first quarter of current fiscal stood at Rs 6,956 crore, registering a rise of 11 percent, compared to Rs 6,247.6 crore in the year-ago period. The shipping major managed to surpass market expectation for its Q1 Y25 results on the bottomline.
According to a Bloomberg poll of eight brokerages, Adani Port was expected to report a revenue of Rs 7,007 crore, a 12 percent increase from the previous year and flat quarter-on-quarter. Seven brokerages project a net profit of Rs 2,292.50 crore, up 5 percent year-on-year and 13 percent quarter-on-quarter.
During the quarter, Adani Ports concluded divestment of 49 percent equity stake of Adani Ennore Container Terminal Pvt Ltd, a subsidiary of the Company, for consideration of Rs 248.54 crore, and recorded a gain of Rs 603.27 crore in the statement of profit and loss, it said.
Total volume handled at ADSEZ during 1Q FY25 stood at 109 MMT, up 7.6 percent from that a year ago, and flat quarter-on-quarter. The company saw a loss of 5.7 MMT of cargo volume due to the disruption at the Gangavaram Port.
“On the financial front, we posted all-time high earnings. But for the temporary disruption in Gangavaram Port, which is now fully restored, our Q1 cargo volume would have been at 114.7 MMT, a 13% increase,” said Ashwani Gupta, Whole-time Director & CEO, APSEZ, in a statement.
The company’s EBITDA (excluding forex) jumped 29 percent to Rs 4,848 crore. Domestic Ports contributed Rs 3,990 crore to EBITDA, while logistics contributed Rs 144 crore.
Adani Ports recorded a gain of Rs 603.27 crore which contributed to the company’s topline after selling off a 49 percent equity stake in Adani Ennore Container Terminal Pvt Ltd, a subsidiary of the company, for consideration of Rs 248.54 crore.
For its guidance in FY24, Adani Ports said that its cargo volumes expected at 460-480 MMT resulting in a revenue of Rs 29,000-31,000 crore and EBITDA of Rs 17,000-18,000 crore. The total capex during the year is expected to be Rs 10,500-11,500 crore.
The growth in cargo volume was led by an increase in containers volumes which rose 18 percent on year and a rise in the cargo handling volumes of liquids and gases by the port which rose 11 percent on year.
Gupta added that in Q1FY25 Adani Ports has won two new port concessions and a port O&M contract.
“Signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 at the Dar es Salaam Port, Tanzania. CT2, with four berths, has an annual cargo handling capacity of 1 million TEUs and managed 0.82 million TEUs of containers in 2023,” the company said in a statement.
Adani Ports ended Q1FY25 with 114 tugboats, 131 trains, 338 electric internal terminal vehicles, 28 dredgers and 937 trucks, up from 112 tugboats, 95 trains, around 40 e-ITVs and 800 trucks at the end of the same quarter a year ago.
By the end of FY2028-29 the port operator plans to operate around 140 tugboats, 300 trains, 20 multi modal logistics parks from 12 currently, and 5,000 trucks.
It is also looking to expand its rail tracks in India to cover 2,000 kms from 690 km at the end of Q1FY25, increase its grain silos capacity to 10 Million Metric Tonne (MMT) from 1.2 MMT and shoot up its warehousing capacity to 20 Mn Sq. Ft from 2.9 Mn Sq. Ft at the moment.
The company added that it handled 27 percent of India’s cargo volumes in Q1FY25 up from around 25 percent at the end of 2022-23. Adani Ports also handled 46 percent of India’s container cargo in Q1FY25, the company said in a press release.
Adani Port said that volumes at its flagship Mundra Port rose 23 percent on year to 51.1 MMT, while EBITDA margin improved to 69 percent from 65 percent a year ago.
Similarly, volumes at its Dhamra port rose 21 percent on year to 12 MMT but EBITDA margins fell to 59 percent from 64 percent a year ago.
Volumes at Hazira Port rose 2 percent on year to 6.8 MMT with EBITDA margins improving to 74 percent from 72 percent a year ago.
The company’s Krishnapatnam port saw volumes fall 5 percent on year due to lower minerals and container cargo, and EBITDA margins fell to 71 percent from 74 percent a year ago.
Kattupalli port saw volumes rise 22 percent to 3.6 MMT and margins rose to 66 percent from 65 percent a year ago.
Volumes of Karaikal port rose 21 percent on year to 3.3 MMT in Q1FY25 and EBITDA margins expanded to 77 percent from 61 percent a year ago.
Dahej port witnessed a 9 percent growth in volumes to 2.8 MMT and EBITDA margins remained stable at 67 percent.
Gangavaram port saw a 51 percent fall in volumes due to reduction in cargo handling to 4.6 MMT, and EBITDA margins fell to 45 percent from 68 percent a year ago.