Adani Ports and Special Economic Zone Limited (APSEZ) has announced that its consolidated net profit grew nearly 3 per cent to ₹1,141 crore for the quarter ended March 31, 2023 against ₹1,112 crore in the corresponding quarter a year ago.

Consolidated revenues from operations stood at ₹5,797 crore for the quarter, up 40 per cent from ₹4,141 crore in the same quarter last year, while total expenses were ₹3,994 crore, up 14 per cent from ₹3,498 crore a year ago.

For the overall FY23, company posted consolidated net profit of ₹5,393 crore, up 9 per cent from ₹4,953 crore last year. Consolidated revenue for the year stood at ₹20,852 crore, up 22 per cent from ₹17,119 crore in FY22. Total expenses for the year stood at ₹15,691 crore, higher by 19 per cent against ₹13,238 crore last year.

APSEZ’s board of directors has recommended 250 per cent dividend or ₹5 per equity share of ₹2 each for the financial year 2022-23.

Margins under pressure

Company’s ports and SEZ segment recorded revenues of ₹18,680 crore (₹15,399 crore last year) for the fiscal 2023 up 21 per cent year-on-year, while revenues from other segments stood at ₹2,351 crore (₹1,892 crore last year), up 24 per cent.

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In its regulatory filing, APSEZ informed that on consolidated basis, company’s net profit margins for the quarter stood at 20 per cent (versus 27 per cent a year ago), and 26 per cent for the fiscal (versus 29 per cent a year ago). Company’s earnings per share has improved to ₹5.36 (₹5.10) and ₹24.58 (₹22.62) for the quarter and fiscal ended March 31, 2023, respectively.

‘Overachieved guidance’

Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone, said, “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.”

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“APSEZ’s investments stood at ₹27,000 crore in FY23, including six major acquisitions totaling around ₹18,000 crore and organic capex of around ₹9,000 crore. 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 per cent in FY19 to around 60 per cent 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,” Adani added.

Guidance for FY24

Giving the guidance for FY24, APSEZ said that cargo volumes are expected to be 370-390 MMT, resulting in a revenue of ₹24,000-25,000 crore, which is 20 per cent higher than that of FY23. The EBITDA is estimated at ₹14,500-15,000 crore, while the total capex during the year is expected to be ₹4,000-4,500 crore.

Net Debt-to-EBITDA for the current fiscal is expected to come down to to around 2.5x from the current 3.1x.

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Company’s current net-debt to EBITDA ratio remained at 3.1x within its guided range of 3-3.5x, it noted.

“In April 2023, APSEZ announced the launch of the bond buyback program. The first tranche of buyback of $130 million notes which are due in June 2024 is already completed. More such buybacks are likely in the coming quarters,” the company said in a statement.

“The promoters have pre-paid the fund-based loans raised through pledging of APSEZ shares, resulting in reduction of pledged shares to 4.66 per cent as on March 31, 2023 against 17.31 per cent as on December 31, 2022,” APSEZ said.

APSEZ shares opened 0.78 per cent (₹5.70) lower at ₹728.60 on BSE on Wednesday.

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