Home Infrastructure Adani Ports On High Growth Mode

Adani Ports On High Growth Mode

Bhubaneswar: Adani Ports and Special Economic Zone Limited (“APSEZ”), the largest transport utility in India and a part of the diversified Adani Group, today announced its results for the first quarter ended 30 June 2021. The results are a validation of the strong fundamentals of the APSEZ strategy leading to a continued gain of market share as the company transforms into a full-fledged pan-India Ports & Logistics platform.

APSEZ handled 76 MMT of cargo in Q1 FY22 compared to 41 MMT in Q1 FY21, registering a growth of 83% compared to 33% growth registered by All India cargo. This was on account of continued focus on handling multi commodities across various ports.  The growth in cargo volume was led by dry cargo which grew by 104%, container by 69%, liquids (including crude) by 57% and the addition of new products including LNG and LPG to the cargo basket.

Higher growth in cargo volume compared to the overall market led to a gain of 310 bps in market share, which now stands at 28.6%. Also, Mundra, Dhamra, Hazira, Dahej and Kattupalli ports registered high double-digit growth.  Consolidated revenue grew by 99% from Rs.2,293 Cr in Q1 FY21 to Rs.4,557 Cr on account of an increase in cargo at port by 83%, rail volume by 10%, and terminal volume by 13% in the Logistics business. Port revenue increased by 75% to Rs.3,339 Cr.

“Our strategy of establishing a network of world-class ports to balance cargo across the east and west coast has been tracking precisely as per plan, thereby continuing to de-risk our growth as well as lay the foundation of a broader logistics platform.

This has resulted in APSEZ accelerating its market share gain,” said Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ. “We have therefore raised our target cargo volumes to 350-360 MMT, which translates to unprecedented YoY growth of about 45%. APSEZ also became the first Indian infrastructure company to have raised a dual-tranche of 10.5-year and 20-year unsecured bond, further reducing our cost of capital to one of the lowest in the industry. I am also pleased to state that our goal of becoming the first port company to be carbon neutral by 2025 is very well on track.”

In July ‘21, as part of the capital management plan, Adani Ports and Special Economic Zone (APSEZ) successfully issued USD 750 Mn of dual-tranche 10.5-year and 20-year unsecured bonds in global capital markets. APSEZ became the only infrastructure company in India to successfully place a 20-year paper, an achievement that reinforced its unique business model underscoring the strength of its strong fundamentals. With this issuance, APSEZ has given a longer yield curve to investors and elongated its debt maturity to over seven years.

The operations of the company continued to benefit from its networked economies of scale and the digitization initiatives that the company has been investing in over the past several years.