On February 1, 2024, Adani Power Limited (BSE, NSE: ADANIPORTS) announced its Q3 2023-24 results, with astounding results yet again as APSEZ Q3 FY24 PAT surged 65% YoY, EBITDA rose 59% to ₹4,293 Cr and Leverage was pegged at 2.5 x Net Debt to EBITDA.
Table of Content
Main Result Takeaways
The integrated transport utility and ports stalwart, Adani Ports & Special Economic Zone Ltd., under the umbrella of the distinguished Adani Group, reported Q3 FY24 results backed by another quarter of repeated growth. Key highlights are mentioned below:
- The Company’s Volume grew by 44% YoY to reach 108.6 MMT.
- The Revenue of the Company saw growth of 45% YoY, to ₹6,920 Cr.
- The Q3 EBITDA surged 59% YoY, to ₹4,293 Cr.
- The PAT, Profit After tax, of the Company rose by 65% YoY, to ₹2,208 Cr.
- The Company’s Net Debt to EBITDA for TTM December 2023 was at the guided level of 2.5x against 3.1x in the same period in FY23.
- The S&P Global ratings of the Company have upgraded the outlook of APSEZ to Stable from Negative.
Additional Read: Q3 Results Dashboard
Financial Results – An Interpretation
The Company has delivered stellar financial results in Q3 FY24, and the details of these are mentioned below:
- An increase in terms of cargo volume during the quarter (+44% YoY) drove revenue growth of 45% YoY to reach ₹6,920 Cr in Q3 FY24.
- The Company’s Domestic port EBITDA margin rise, by around 170 bps, combined with better efficiencies and capacity utilisation, resulted in a 59% YoY growth in the EBITDA, to ₹4,293 Cr.
- A solid cargo volume growth resulted in a record PAT of ₹2,208 Cr (+65% YoY) during the quarter
- A Bond buy-back of USD 325 million was concluded in the period of 9M FY24, leading to an improvement in the Net Debt to EBITDA (for TTM December 2023) to 2.5x vs 3.1x for FY23.
Operational Excellence Leads Success
Here are the main operational highlights that have led APSEZ to a successful quarter:
- Adani Ports & Special Economic Zone (APSEZ) achieved its highest-ever quarterly cargo volume reaching 108.6 MMT.
- Mundra, the Company’s flagship port, registered its highest-ever monthly volume at any port in India, in October 2023, and AICTPL (CT-3) registered India’s highest monthly container volume in November 2023.
- In Q3 FY24, APSEZ achieved a major milestone of 300 MMT within 266 days relative to 329 days in FY23; the overall cargo volume stood at ~311 MMT in 9M (a rise of 23% YoY).
- The Domestic cargo growth was above 2.5x the growth rate of India, with nine of the Company’s domestic ports or terminals registering their highest-ever cargo volumes in 9M.
- The Company’s quarterly rail volumes went up 17% YoY, to 157,904 TEUs and GPWIS volumes surged 53% YoY, to 5.29 MMT.
- APSEZ has recorded its highest-ever rail (a growth of 22%) and GPWIS (a rise of 46%) volumes in 9M FY24.
Business Strengths
APSEZ exhibited strength in the business in Q3 FY24:
- A strategic partnership with MSC was forged, by forming a JV for the Ennore Container Terminal.
- The Company concluded the sale of the Myanmar asset and the acquisition of the Karaikal Port.
- ALL added 23 rakes, Loni & Valvada ICD, as well as warehouses at Indore and NRC.
- The Company’s Colombo terminal received a financing commitment of USD 553 million from DF.
The Management’s Take on Q3 Results
The CEO of Adani Ports and Special Economic Zone had some key aspects of Q3 results to share and these are highlighted below:
- In the year when the Company’s first port at Mundra has completed 25 years of operation, APSEZ has recorded its most robust Q3 and 9M performance clocking the highest-ever Revenue, EBITDA, and cargo volumes.
- Given the success of the Company in Q3 FY24, it is on course to achieve more than its full-year guidance predicted at the start of the year.
- In a large part, this is all due to the Company’s operating prowess.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Cr as reported by the Company, except where indicated otherwise):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 | YoY Change % |
| Cargo (MMT) | 108.6 | 75.4 | 44% |
| Revenue | 6,920 | 4,786 | 45% |
| EBITDA | 4,293 | 2,697 | 59% |
| Profit After Tax (PAT) | 2,208 | 1,337 | 65% |
Additional Check: Adani Ports Share Price
Q3 FY24 Result Summary
APSEZ or Adani Ports and Special Economic Zone Ltd, a prominent part of the internationally diversified Adani Group, has mutated from a simple port company to an Integrated Transport Utility Enterprise, providing end-to-end solutions from its port gate to the customer gate. The largest and most important port developer as well as port operator in India, it has 7 strategically located ports plus terminals on the west coast of India (Mundra, Dahej, Tuna, and Hazira in Gujarat, Dighi in Maharashtra, Mormugao in Goa, and Vizhinjam in Kerala) as well as 7 ports and terminals on the India’s East coast (Dhamra in Odisha, Haldia in West Bengal, Gangavaram and Krishnapatnam in Andhra Pradesh, Karaikal in Puducherry, and Kattupalli and Ennore in Tamil Nadu), representing 27% of the nation’s total port volume. Consequently, the Company is proficient at handling huge cargoes from India’s hinterland as well as the coastal areas. The Company is also in the process of developing a transshipment port at Colombo in Sri Lanka and successfully operates the Haifa Port in Israel. The Company’s Ports to Logistics Platform including port facilities, top-quality warehouses, integrated logistics capabilities comprising multimodal logistics parks, as well as industrial economic zones, positions the Company at an advantage as India benefits from a potential overhaul in international supply chains.
With the Company’s vision to be the largest and most prominent ports and logistics platform, globally, within the next ten years, the Company strives to be a success quarter after quarter, as it has in Q3 FY24. The quarter has marked, for APSEZ, industry-leading growth, a trademark of the Company for a decade. In the quarter and nine months of FY24, growth in ports, other than the Mundra Ports, the traffic parity in coasts plus reaching the customer gate has transformed APSEZ into India’s largest and most relevant Transport Utility space.
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Source: Adani Ports and SEZ Press Release on BSE
