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Adani Ports Q1 Result | Consolidated profit dips 16% YoY to Rs 1,072 crore; revenue remains flat; misses estimates

Adani Ports Q1 Result: The cargo and logistics business delivered strong performance even as the company’s SEZ business witnessed a decline in its revenues to the tune of Rs 725 crore.

August 08, 2022 / 03:42 PM IST
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Adani Ports and SEZ Limited on August 8 reported a 16 percent decline in consolidated net profit at Rs 1,072 crore for the first quarter of FY22-23 against Rs 1,278 crore in the year-ago period. On a sequential basis, the profit was 4.7 percent higher against Rs 1,024 crore earned during the January–March period.

Consolidated revenue of the Gautam Adani-owned company remained flat on-year at Rs 4,638 crore from Rs 4,671 crore in the year-ago quarter. Sequentially, the revenue was 20.6 percent higher than Rs 3,845 crore recorded in the previous quarter.

The cargo and logistics business delivered strong performance during the current period of challenging macro environment even as the company’s SEZ business witnessed a decline in its revenues to the tune of Rs 725 crore.

“Q1FY23 has been the strongest quarter in APSEZ’s history, with a record cargo volume and highest ever quarterly EBITDA which saw a 11 percent jump on a robust performance in the corresponding quarter last year that witnessed the post Covid demand surge,” said Karan Adani, CEO and Whole Time Director of the company. “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”.

The cargo business generated revenues of Rs 4,090 crore at a YoY growth of 18 percent (this does not include revenues from Ganagavaram port) while the logistics business generated revenues of Rs 360 crore at a YoY growth of 34 percent.

During the quarter the company handled a total cargo volume of 91 MMT (million metric tonnes) at a YoY growth of 8 percent. This includes 9.09 MMT at Gangavaram port which witnessed a YoY growth of ~8 percent.

The port business witnessed an 8 percent YoY growth in volumes which aided in an 18 percent YoY growth in its EBITDA (earnings before interest, tax, depreciation and amortization) at Rs 2,885 crore while the EBITDA for its logistics business jumped 56 percent on year to Rs 96 crore.

“The EBITDA margins for the logistics business expanded by 370 bps on year due to economies of scale and increased share of the GPWIS revenue stream”, the company said in its earnings release.

Gangavaram port, reported revenue of Rs 414 crore and an EBIDTA of Rs 280 crore during the quarter. These numbers however, are currently not part of the consolidated results for the quarter.

The company is set to commission two new terminals in the coming months while the logistics business will get strengthened by the assets it commissioned during the quarter.

“Our strategy of connecting port gate to customer gate through an integrated utility model is starting to yield results,” added Adani. “We are confident of achieving our full year guidance of 350-360 MMT cargo volumes and EBITDA of Rs 12,200-12,600 crore”.

Adani Ports closed Rs 8.6 lower at Rs 801.65 on the National Stock Exchange. The stock has generated returns of 13 percent over the past year.

 
Gaurav Sharma
first published: Aug 8, 2022 02:49 pm