Adani Ports has announced its highest-ever quarterly revenue, profit, and EBITDA for Q1, significantly boosting its share value. The strong performance in the Adani Ports Q1 results underscores the company’s robust market position and operational success.
Adani Ports and Special Economic Zone (APSEZ) announced a 47% increase in net profit for the June quarter, reaching ₹3,112 crore, compared to ₹2,114.72 crore in the same period last year. The profit exceeded market expectations. The company’s EBITDA for Q1 surged by 29% to ₹4,848 crore, setting a new record, up from ₹3,754 crore in Q1 of the previous fiscal year.
The Q1 EBITDA margin improved to 71.70% from 61.43% year-over-year, while revenue climbed 21% to ₹7,560 crore, compared to ₹6,248 crore in the previous year’s Q1. Earnings per share (EPS) increased to ₹14.41 from ₹9.79 year-over-year.
Stock Performance and Market Capitalization Following Adani Ports Q1 Result
Adani Ports’ stock rose by 2.19% to ₹1,604.15 on the BSE during the afternoon session, and the company’s market capitalization reached ₹3.43 lakh crore.
Ashwani Gupta, Whole-time Director & CEO of APSEZ, commented, “FY25 has started strongly for us with outstanding financial and growth performance. We achieved record earnings, and despite a temporary disruption at Gangavaram Port, which is now fully restored, our Q1 cargo volume would have been 114.7 MMT, reflecting a 13% increase. Additionally, we secured two new port concessions and a port O&M contract. We are proud that four of our ports featured in the World Bank’s Container Port Performance Index 2023.”
The company had reported a net profit of ₹2,115 crore for the April-June quarter last year.
Revenue from operations for the first quarter of the current fiscal year stood at ₹6,956 crore, marking an 11% increase from ₹6,247.6 crore in the same period last year.
Adani Ports exceeded market expectations for Q1 FY25 results. A Bloomberg poll of eight brokerages had predicted a revenue of ₹7,007 crore, a 12% increase year-over-year, and a net profit of ₹2,292.50 crore, up 5% year-over-year and 13% quarter-over-quarter.
During the quarter, Adani Ports completed the divestment of a 49% equity stake in Adani Ennore Container Terminal Pvt Ltd for ₹248.54 crore, recording a gain of ₹603.27 crore.
Total volume handled by APSEZ in Q1 FY25 was 109 MMT, a 7.6% increase from the previous year, despite a 5.7 MMT loss in cargo volume due to disruptions at Gangavaram Port.
Gupta noted, “We achieved record earnings for Q1, and had it not been for the temporary disruption at Gangavaram Port, our cargo volume would have been 114.7 MMT, reflecting a 13% increase.”
EBITDA (excluding forex) rose 29% to ₹4,848 crore, with domestic ports contributing ₹3,990 crore and logistics adding ₹144 crore.
The company also gained ₹603.27 crore from selling a 49% equity stake in Adani Ennore Container Terminal Pvt Ltd for ₹248.54 crore.
For FY24, Adani Ports forecasts cargo volumes of 460-480 MMT, with revenue expected between ₹29,000-31,000 crore and EBITDA ranging from ₹17,000-18,000 crore. The total capital expenditure is projected to be ₹10,500-11,500 crore.
The growth in cargo volume was driven by an 18% increase in container volumes and an 11% rise in liquid and gas cargo handling.
Gupta added that APSEZ has won two new port concessions and a port O&M contract. The company signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage Container Terminal 2 at Dar es Salaam Port, which has a capacity of 1 million TEUs and handled 0.82 million TEUs in 2023.
By FY2028-29, Adani Ports plans to operate around 140 tugboats, 300 trains, 20 multi-modal logistics parks (up from 12), and 5,000 trucks. It also aims to expand its rail network in India to 2,000 km from 690 km, increase grain silo capacity to 10 MMT from 1.2 MMT, and boost warehousing capacity to 20 million sq. ft from 2.9 million sq. ft.
The company handled 27% of India’s cargo volumes in Q1 FY25, up from 25% in the previous fiscal year, and 46% of India’s container cargo.
Volumes at its flagship Mundra Port increased by 23% year-over-year to 51.1 MMT, with EBITDA margins improving to 69% from 65% a year ago.
At Dhamra Port, volumes rose 21% year-over-year to 12 MMT, though EBITDA margins declined to 59% from 64% the previous year. Hazira Port saw a 2% increase in volumes to 6.8 MMT, with EBITDA margins improving to 74% from 72% a year ago.
Krishnapatnam Port experienced a 5% decline in volumes due to reduced minerals and container cargo, with EBITDA margins falling to 71% from 74% a year ago.
Kattupalli Port saw a 22% increase in volumes to 3.6 MMT and margins improved to 66% from 65% a year ago.
Karaikal Port reported a 21% increase in volumes to 3.3 MMT in Q1 FY25, with EBITDA margins expanding to 77% from 61% the previous year.
Dahej Port experienced a 9% growth in volumes to 2.8 MMT, with EBITDA margins remaining stable at 67%.
Gangavaram Port faced a 51% decline in volumes, with cargo handling dropping to 4.6 MMT and EBITDA margins falling to 45% from 68% a year ago.
You might also be interested in – Adani case: Kotak Mahindra Bank shares fall 2% as lender’s name emerges in Hindenburg’s Sebi response
