Adani Ports and Special Economic Zone (ADANIPORTS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw robust growth with 109 million metric tons of cargo handled, up 8% YoY, excluding non-operational days at Gangavaram.

• Secured new terminal concessions in Tanzania and Deendayal Port, and an O&M contract in Kolkata; acquired 95% equity stake in Tanzania East Africa Gateway Terminal Limited for USD 39.89 million.

• Vizhinjam Port welcomed its first mothership; marine services expanded to Mexico and Sri Lanka.

• Four ports featured in World Bank's Container Port Performance Index 2023.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, with results reviewed by statutory auditors and limited review reports provided.

Financial highlights

• Q1 FY25 operating revenue reached INR 7,560 crore, up 21% YoY; consolidated revenue from operations was ₹6,956.32 crore, up from ₹6,247.55 crore in Q1 FY24.

• EBITDA (excluding forex impact) was INR 4,848 crore, up 29% YoY; domestic ports' EBITDA margin rose to 72%.

• Profit after tax was INR 3,107 crore, a 47% YoY increase; consolidated net profit attributable to equity holders was ₹3,112.83 crore.

• Logistics business reported rail cargo at 0.16 million TEUs and GPWIS volume at 5.56 million metric tons.

• Gain of ₹603.27 crore recorded from sale of 49% stake in Adani Ennore Container Terminal Private Limited.

Outlook and guidance

• Guidance for FY25 reaffirmed, with expected volume growth 2.5-2.6x India's trade growth.

• Vizhinjam Port to be fully operational from October; full capacity utilization expected in FY26.

• Gopalpur Port to contribute from the current quarter, with full revenue effect from Q3.

• Targeting 1 billion metric tons by 2030 through capacity expansion and new projects.

• Management concluded there are no material consequences from the short seller report or SEBI show cause notices, and the company continues to comply with all applicable laws and regulations.