Adani Ports Q1 Results FY 22

Adani Ports and Special Economic Zone Limited, also called APSEZ, has posted a remarkable growth in its quarterly results published on 3rd August 2021. The company boasted of a 77.04% year-on-year (y-o-y) increase in net profit, from Rs 757.83 crore reported last year to Rs 1,341.69 crore this year.

The Adani Ports Q1 Results showed an increase in revenue from operations also and had an impressive growth of 98.8% y-o-y. It rose from Rs 2,292.7 crore last year to Rs 4,556.8 crore this year.

The growth in cargo handling increased 83% y-o-y as it upped cargo from 41 MMT to 76 MMT at the end of the first quarter of the new financial year. This growth in cargo resulted from the handling of multiple commodities across the different ports of the company. It is noteworthy that APSEZ is the largest port developer and operator in India with 12 strategically located ports and terminals, representing 24% of the country’s total port capacity.

The EBITDA rose by 60% on a y-o-y basis from Rs 1,395 crore to Rs 2,231.7 crore. 

At the end of the trading day, the shares of the company closed 2.6% higher on the NSE at Rs 709.8. 

Hits

• 77.04% y-o-y growth in the consolidated net profit – a rise from Rs 757.83 crore to Rs 1,341.69 crore
• 98% y-o-y growth in the revenue from operations – from Rs 2,292.7 crore to Rs 4,556.8 crore
• 83% y-o-y growth in overall cargo – from 41 MMT to 76 MMT. This growth resulted from a growth in different types of cargo handled by the company. These are as follows –

• Growth in dry cargo – 104% y-o-y
• Growth in container cargo – 69% y-o-y
• Growth in liquid cargo – 57% y-o-y

• The company also added CNG and LPG cargo to its portfolio

• Increase in the cargo and container market share as follows –

• Cargo market share – 310 bps increase y-o-y to reach 28.6%
• Container market share – 163 bps increase y-o-y to reach 43%

• Port EBITDA grew by 71% y-o-y and operating EBITDA grew by 60%

Misses

• Compared to a forex gain of Rs 37 crore in the first quarter of the last financial year of Adani Ports, it suffered a forex loss of Rs 389 crore in the first quarter of the current financial year.

Management Comments

“Our strategy of establishing a network of world-class ports to balance cargo across the east and west coast has been tracked precisely as per plan, thereby continuing to de-risk our growth as well as lay the foundation of a broader logistics platform. This has resulted in APSEZ  accelerating its market share gain,” said Mr Karan Adani, Chief Executive Officer and Whole Time Director of  APSEZ.  

What Does It Mean For Investors?

The Adani Ports Q1 Results show that the company may have the potential for future growth. With aggressive expansion measures through acquisitions, Adani Ports has boosted its market capitalisation as well. Profit growth for the company exceeds predictions done by market analysts. With further easing of lockdown norms and normalcy in business activities post the effects of the pandemic could push the company’s growth to newer heights, according to management.