Adani Ports Revenue and EBITDA jumps over 20% in FY23 Record investments during the year to drive growth. Adani Ports and Special Economic Zone Ltd (“APSEZ”), today announced its results for the fourth quarter and year ended 31 March 2023.
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.
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
includes 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.
Operational Milestones:
APSEZ recorded its highest-ever port cargo volumes at 339 MMT in FY23,
which is a good ~9% Y-o-Y jump
APSEZ handled 300 MMT of cargo in just 329 days, surpassing the previous
Two of APSEZ’s ports (Mundra and Krishnapatnam) are featured in the top 10
ports of India for their annual cargo volumes
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)
Mundra continues to be the largest container handling port with 6.64 Mn
TEUs in FY23 (10% higher than its closest competitor)
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
Transforming India’s port sector: 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.
Record investments during the year: 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 to Rs 9,000 Cr.
Net Debt to EBITDA ratio well within the guided range: Despite a record annual
investment of around Rs 27,000 Cr (highest ever in the company’s lifetime), APSEZ
has managed to maintain the net debt to EBITDA ratio at 3.1x (guided range of 3-
3.5x). In Apr’23, APSEZ also announced the launch of the bond buyback program.
The first tranche of buyback of USD 130 Mn notes which are due in Jun’24 is
already completed. More such buybacks are likely in the coming quarters.
Five bids won: A total of five bids were won during the year including two in ports
business (mechanization of Berth 2 at Haldia Port and greenfield construction of
Tajpur Port) and three in logistics business (Loni ICD, Valvada ICD and 70 agri
silos with cumulative capacity of 2.8 MMT).
Pledge reduced significantly: The promoters have pre-paid the fund-based loans
raised through pledging of APSEZ shares, resulting in reduction of pledged shares
to 4.66% as on 31 st Mar’23 vs 17.31% as on 31 st Dec’22.
Dividend declared: For FY23, the APSEZ Board has recommended a dividend of
Rs.5 per share, in line with our capital allocation policy. This implies a payout of
around Rs 1,080 Cr for the company.
Guidance for FY24: Cargo volumes expected at 370-390 MMT resulting in a
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