Adani Ports reports strong results in FY2023

Adani ports

According to Adani Ports’ chief executive officer, Adani Ports and Special Economic Zone’s (APSEZ’s) revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) have risen at a compound annual growth rate of 16-18% over the previous five years, while the company’s domestic market share increased to 24% in FY23.

In particular, APSEZ recorded approximately US$2.5 billion in revenues and US$1.5 billion in EBITDA in the fiscal year 2023 (April 2022 – March 2023), when the company also invested over US$3.2 billion in six important acquisitions among others. Haifa Port Company, Gangavaram Port, Karaikal Port, IOTL, Ocean Sparkle, and ICD Tumb were among the takeovers of APSEZ in the previous fiscal year.

“As a result, gross debt to fixed asset ratio has declined sharply from 80% in FY19 to around 60% in FY23. The investments made along with the five bid wins during the year, will enable APSEZ to achieve its targeted cargo volumes of 500 MMT in 2025 and speed up the transition of the business model to a transport utility,” stated Karan Adani, CEO of Adani Ports.

During the year, five bids were won, including two in the ports business (mechanisation of Berth 2 at Haldia Port and greenfield building of Tajpur Port) and three in the logistics sector (Loni ICD, Valvada ICD, and 70 agri silos with a total capacity of 2.8 MMT).

In fiscal year 2023, APSEZ released its highest-ever port cargo volumes of 339 million metric tonnes, representing a 9% year-on-year growth.

APSEZ’s ports of Mundra and Krishnapatnam are among India’s top ten in terms of yearly cargo volumes. Mundra Port continues to be India’s largest box-handling port with 6.64 million TEUs in FY23, 10% more than its nearest competitor. The port is also India’s largest commercial port, with cargo volumes topping 155 million metric tonnes.

Adani Logistics also saw a 24% year-on-year increase in rail volume to 500,446 TEUs and a 19% year-on-year increase in terminal volume to 358,863 TEUs.

Cargo volumes are estimated to be 370-390 MMT in the next year, while revenue is anticipated at around US$3 billion and EBITDA at approximately US$1.8 billion.

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