Adani Ports handles cargo volume of 247 MMT, registering a growth of 11%

Adani Ports and Special Economic Zone has reported a consolidated net profit of Rs1,288 crore for the quarter ended March 31, 2021. The company had posted a profit of Rs334 crore in the year-ago period. The company’s March-quarter consolidated revenues from the logistics business stood at Rs.958 crore. Increased cargo volume, operational efficiencies enabled port EBITDA to grow by 15 per cnet from Rs.6,593 cr. in FY20 to Rs.7,560 crore in FY21. Logistics business has reported an EBIDTA of Rs.226 crore. In FY21, and maintained the EBIDTA margin at 24 per cent.
Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “FY21 has been a transformational year for APSEZ. Some of the key decisions we took this year have set the foundation for the coming decade. Our customer centric approach has yielded good result for us as our market share increased by 4% on a pan-India basis. Mundra port which is the largest commercial port in the country, this year has also become the largest container port in the country surpassing JNPT by a big leap. We have also been able to restructure our cost fundamentally and were able to demonstrate an increase in EBIDTA margin by 1% taking our port margins to 70%. On the growth side we used this time to complete four large acquisitions i.e Krishnapattanam port, Gangavaram port, Dighi port and Sarguja Rail line, taking our total portfolio to 13 ports in the country. The total value of said investment was Rs.26,000 cr. We have also been able to take another milestone step in our international journey by foryaing into container terminal in Colombo port. With these steps we are truly in the right direction to take APSEZ from a port company to a transport utility company delivering full logistics solution to our customers.
In the logistics business, we have been able to scale up and diversify our railway rolling stock business. The recent changes in the General Purpose Wagon Investment Scheme (GPWIS) of Indian railways has given opportunity to serve our bulk customers not just from ports but also from the mines. We were able to add contracts to operate 16 new rakes for transportation of raw material from the mines. FY21 has also seen shift towards e-commerce and hence a fundamental shift towards demand increasing for large format Grade-A warehouses. Adani Logistics have forayed into this sector and has the vision to be the largest player in this sector in the coming five years. We have set our sight to build 30 million sq ft of warehousing capacity in the next five years.
In FY21 we have also setup a new vertical of Railway track business. With the acquisition of Sarguja Rail (SRCPL) and restructuring of other railway tracks within APSEZ we have set the foundation to partner with Indian railway and invest in strategic rail lines under the PPP model. With this we have created India’s first private sector railway track asset company with a steady stream of annuity income.
In FY22, basis our internal estimates we guide for cargo volume to be in the range of 310-320 MMT, this includes 10 MMT of Gangavaram port in Q4 FY22. Consolidated revenue to be in the range of Rs.16,000 cr. to Rs.16,800 cr., Consolidate EBIDTA to be in the range of Rs.10,200 crore to Rs10.700 crore and free cash flow to be in the range of Rs5,500 crore to Rs6,000 crore.
With all this APSEZ is well on its course to become a truly integrated transport and logistics utility and achieve 500 MMT of cargo throughput and ROCE to be in excess of 20 per cnet by FY25.”