Adani Ports and Special Economic Zone (APSEZ) recently announced its financial results for the second quarter of 2023-24, revealing a consolidated net profit of Rs 1747.85 crore. Although this marks a growth of 4.19 per cent from last year, the profits were impacted by a write-off of Rs 455 crore past MAT credit due to the adoption of a new tax regime. However, the company’s revenue from operations saw a robust increase of 27.55 per cent, reaching Rs 6,646.41 crore.
Financial Highlights
- Net profit: Rs 1747.85 crore, a 4.19 per cent YoY growth.
- Revenue from operations: Rs 6,646.41 crore, up 27.55 per cent from the previous fiscal’s corresponding quarter.
- Operating margin: 58 per cent, down from 63 per cent YoY.
- Net profit margin: 27 per cent, down from 33 per cent.
Half-Yearly Performance
For the first half of FY24, APSEZ reported a 26 per cent YoY increase in revenue, reaching Rs 12,894 crore. EBITDA also witnessed a substantial growth of 49 per cent YoY, totalling Rs 7,429 crore. The port EBITDA margin expanded by 220 basis points to 72 per cent.
Operational Highlights
APSEZ attributed its strong performance to a 14 per cent YoY increase in cargo volume and improved operational efficiencies at its ports. In H1 FY24, the company handled 202.6 million metric tonnes, surpassing the FY23 guidance of 370-390 MMT. Notably, 53 per cent of the volume consisted of dry bulk, 37 per cent was containers, and 10 per cent was liquid and gas.
CEO Statement
Karan Adani, the CEO and Whole Time Director of Adani Ports and SEZ, expressed satisfaction with the splendid performance. He credited the success to the increase in cargo volume and operational efficiencies, leading to a 220bps YoY improvement in domestic ports’ EBITDA to 72 per cent during H1 FY24.
Cargo Volume Growth
In the second quarter alone, APSEZ reported a 17 per cent YoY increase in cargo volume, totalling 101 MMT. During this period, the company achieved a 2 per cent rise in port realization per tonne. Additionally, in October, APSEZ reached its lifetime high monthly cargo volumes of 37 MMT, reflecting a 48 per cent jump.
Summary
Despite a dip in net profit attributed to tax-related adjustments, Adani Ports and SEZ demonstrated robust financial and operational performance in Q2 FY24. The increase in cargo volume, efficient port operations, and strategic growth initiatives position the company favourably in the competitive maritime sector. Investors and stakeholders will be keenly watching as APSEZ navigates through dynamic market conditions in the coming quarters.
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