Adani Ports and SEZ Q1 FY23 Results - PAT down by 16.09% to Rs. 1,072.38 crore

08 August 2022
4 min read

India’s largest private multi-port operator, Adani Ports and Special Economic Zones Ltd, announced its financial results for the first quarter of FY23 on 8th August 2022. The company reported its profit after tax (PAT) at Rs. 1,072.38 crore in Q1 FY23, down 16.09% YoY from Rs. 1,277.99 crore in Q1 FY22. 

This decline Adani Ports profits can be attributed to an increase in employee benefit expenses by the company. There was also a rise in interest on bank charges as well as depreciation and amortisation expenses. However, the major contributor to the decline was an increased loss on account of foreign exchange fluctuations, which stood at Rs. 1,201.14 crore during the current quarter, up 209.05% YoY as against Rs. 388.66 crore in the same quarter of the previous year. 

The revenue from operations also declined marginally by 0.71% YoY to Rs. 4,637.95 crore in Q1 FY23 from Rs. 4,671.19 crore in Q1 FY22. As per the company’s management, this decline was well in line with their expectation and has been factored in their full year guidance for FY23. 

EBITDA during Q1 FY23 stood at Rs. 3,005 crore, clocking a 11% YoY growth. This was the highest ever recorded EBITDA for the company. This was backed by revenue growth for the ports and the logistics business. The ports EBITDA grew 18% YoY to Rs. 2,885 crore while the logistics business EBITDA grew by 56% YoY to Rs. 96 crore in Q1 FY23, and the margin expanded by 370 bps to 27%. This was aided by increase in cargo volumes, cargo diversification, elimination of loss-making routes, and operational efficiency measures taken by the company. Q1 FY23 recorded the highest ever quarterly cargo of 91 MMT, up 8% YoY.

Adani Ports and SEZ commissioned two new terminals, one MMLP, three new agri-silo storage terminals, and a 6 lakh sq. ft warehousing capacity in this quarter to further boost growth. 

The earning per share (EPS) of the company stood at Rs. 5.08 in Q1 FY23, down from Rs. 6.06 in QA1 FY22. The Adani Ports and SEZ reacted negatively to the results announcement and was trading at Rs. 795.95, down 1.76% at around 3 pm, minutes after the result was declared during trading hours. 

Hits of Adani Ports Q1 Results

  • EBITDA during Q1 FY23 stood at Rs. 3,005 crore, clocking a 11% YoY growth. This was the highest ever recorded EBITDA for the company.
  • Ports EBITDA grew 18% YoY to Rs. 2,885 crore in Q1 FY23.
  • Logistics business EBITDA grew by 56% YoY to Rs. 96 crore in Q1 FY23.
  • Q1 FY23 recorded the highest ever quarterly cargo of 91 MMT, up 8% YoY.

Misses of Adani Ports Results

  • Profit after tax stood at Rs. 1,072.38 crore in Q1 FY23, down 16.09% YoY.
  • Revenue from operations declined marginally by 0.71% YoY to Rs. 4,637.95 crore in Q1 FY23.
  • EPS of the company stood at Rs. 5.08 in Q1 FY23, down from Rs. 6.06 in QA1 FY22.  

Segment-wise revenue under Q1 results of Adani Ports

  • Port and SEZ activities: Revenue down 2.53% YoY from Rs. 4,158.51 crore in Q1 FY23 from Rs. 4,266.59 crore in Q1 FY22.
  • Others: Revenue up 15.65% YoY from Rs. 516.04 crore in Q1 FY23 from Rs. 446.21 crore in Q1 FY22.

What the management says about the results

“Q1 FY23 has been the strongest quarter in APSEZ’s history, with a record cargo volume and highest ever quarterly EBITDA. This is a 11% jump on a robust performance in the corresponding quarter last year that witnessed the postCovid demand surge,” said Mr Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone. “The company continued this strong performance in July and recorded 100 MMT of cargo through-put in the initial 99 days of FY23, a feat never achieved before.” 

“Our strategy of connecting port gate to customer gate through an integrated utility model is starting to yield results,” added Mr Karan Adani. “We are confident of achieving our full year guidance of 350-360 MMT cargo volumes and EBITDA of Rs 12,200-12,600 Cr. APSEZ remains committed to its philosophy of ensuring sustainable growth in partnership with our key stakeholders.” 

Other things to know

  • During Q1 FY23, Adani Ports and SEZ handled 90.89 MMT of cargo (including 9.09 MMT at Gangavaram Port), displaying a ~8% YoY growth.  The growth in cargo volume was led by dry cargo (up 11.2%), followed by containers (up 3.2%), and liquids including crude (up 5.6%). 
  • The automobile segment, though a small proportion of overall volumes, saw a 120% jump in volumes. 
  • Both the Mundra and non-Mundra ports had a similar growth rate, and the non-Mundra ports contributed 53% to the cargo basket.  Mundra continues to be the largest container handling port with 1.65 million TEUs versus 1.48 million TEUs managed by JNPT during the quarter. Mundra, crossed 50 MMT of cargo volumes in the initial 111 days of FY23. 
  • Adani Ports and Gadot Group consortium (70:30 partnership) won the bid for the acquisition of 100% stake in Haifa Port Company acquisition at a bid value of NIS 3.9 billion (~USD 1.13 billion).  
  • Adani Ports and SEZ was recognized by the Chief Minister of Gujarat for its initiative on plastic waste collection from the villages around Mundra and its sustainable disposal.  
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