Q1 results: APSEZ registers record cargo volumes and EBITDA

•  Highest ever quarterly cargo of 91 MMT, clocks 8% Y-o-Y growth
• Record EBITDA of Rs 3,005 Cr, clocks 11% Y-o-Y growth
• Logistics business delivered 56% EBITDA jump vs. the corresponding FY22 quarter
• Commissioning of two new terminals, one MMLP, three new agri-silo storage terminals and 0.6 Mn sqft warehousing capacity in Q1 to further boost growth

 NE BUSINESS BUREAU

AHMEDABAD,  AUG 9

Adani Ports and Special Economic Zone Ltd (APSEZ), the largest transport utility in India, on Monday announced that the cargo and logistics business delivered strong performance during the current period of challenging macro environment for the first quarter of FY2023.

 “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 post-Covid demand surge,” said 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.”

This performance was delivered by both the businesses – ports and logistics. The ports business, on the back of 8% Y-o-Y growth in volumes, delivered a 18% jump in EBITDA. The logistics business too experienced a robust growth, with EBITDA increasing 56% Y-o-Y. The EBITDA margin of the logistics business expanded 370s bps due to economies of scale and increased share of the GPWIS revenue stream.

With APSEZ set to commission two new terminals in the coming months, this growth story will gain more momentum. The container terminal at Gangavaram Port will become operational next month, while the 5 MMT LNG terminal at Dhamra will be ready by December end. This LNG terminal has a take-or-pay contract with couple of O&G majors.

The logistics business will also be boosted by the assets commissioned during the quarter. This includes a MMLP in Taloja, three agri-silo storge terminals with a combined capacity of 0.15 Mn MMT (one each at Panipat, Kanoj and Dhamora,), warehousing capacity of 0.6 Mn sq. ft, two new trains under the GPWIS framework and 125 trailer trucks for providing the last mile connectivity at three MMLPs (Patli, Nagpur, and Kishangarh).

“Our strategy of connecting port gate to customer gate through an integrated utility model is starting to yield results,” added 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.”