Adani Ports's Q2 net profit rises 4% to Rs. 1,748cr
Adani Ports & Special Economic Zone Ltd reported a 4% YoY increase in consolidated net profit at Rs. 1,748 crore for Q3 2023. The firm's operational revenue was up by 28% to Rs. 6,646 crore. Operating profit (EBITDA) surged by 35% to Rs. 4,053 crore, with the EBITDA margin expanding to 61%, a growth of 330 basis points. CEO Karan Adani expressed confidence in the company's record performance, positioning it well to meet full-year revenue and EBITDA projections.
Significant growth seen in cargo and logistics rail volumes
In October, the company announced a 48% surge in cargo volumes, achieving a record monthly volume of 37 million metric tons (MMT). From April to October this year, Adani Ports handled 240 MMT of cargo, reflecting an 18% YoY increase. Non-Mundra ports experienced a 15% volume growth compared to last year, with their share in the cargo basket rising to 56%. Moreover, the firm's logistics rail volumes expanded by 25% YoY to 2.79 lakh Twenty Foot Equivalents (TEUs).
Developments include the Haifa Port stake and Vizinjham Port
Adani Ports holds a 70% ownership in Haifa Port, Israel, and is closely observing the ongoing conflict in the region. According to the company's notes to account, the ultimate impact remains uncertain and indeterminable at this time. Nevertheless, no negative effects on operations or consolidated financial results have been observed as of now. Additionally, Adani Ports docked its first vessel at Vizinjham port in October, with commercial operations anticipated to begin by the end of the current fiscal year.
Company to buy back bonds, expand logistics business
During the quarter, Adani Ports completed the repurchase of two tranches of US Dollar-denominated bonds valued at $325 million, accounting for 50% of the principal repayment amount due in July 2024. The firm's under-construction port in Sri Lanka recently secured a funding commitment of $553 million from the US International Development Finance Corporation (DFC). Adani Ports also broadened its logistics business by incorporating 11 rakes, Loni Inland Container Depot (ICD), and warehouses in Mumbai and Indore into its portfolio.
