Adani Ports and Special Economic Zone Ltd : Record quarterly cargo, revenue and EBITDA

Ahmedabad, 8 August 2023: Adani Ports and Special Economic Zone Ltd (“APSEZ”), today announced its results for the first quarter ended 30 June 2023.

# EBITDA includes the impact of forex mark-to-market gain or loss. In Q1 FY24, forex gain is Rs 10.93 Cr and in Q1 FY23, forex loss is Rs 1201.14 Cr.

APSEZ delivered its strongest ever quarterly operating performance during Q1 FY24, with highest ever quarterly cargo volumes, revenue, EBITDA and around 200bps jump in domestic market share, despite over 50% of the company’s total port capacity being adversely impacted for around 6 days due to the cyclone Biparjoy, said Mr. Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone.

Our continuous efforts on improving operational efficiencies have resulted in domestic ports business EBITDA margin of 72% and logistics business EBITDA margin of 28%, which is higher than the reported margins of listed peers from India. Our newly acquired assets, Haifa Port and Karaikal Port, have ramped up well with monthly cargo volumes now touching 1 MMT mark at the two ports. With our cargo volumes crossing 100 MMT during the quarter, we are well on course to achieve our FY24 cargo volume guidance of 370-390 MMT.” added Mr. Karan Adani.

Operational Milestones:

❖ APSEZ recorded its highest-ever quarterly port cargo volumes at 101.4 MMT in Q1 FY24, reflecting a healthy 12% Y-o-Y jump

❖ APSEZ’s domestic cargo volumes recorded 8% Y-o-Y increase, which is ~3x India’s cargo volume growth rate in the same period

❖ APSEZ’s market share in India increases to 26% in Q1 FY24, a jump of 200bps

❖ Mundra handled 1.72 Mn TEUs in Q1 FY24, which is 12% higher than its closest competitor

❖ Krishnapatnam Port recorded strong volumes by handling 5 MMT cargo volumes in all the three months of the quarter

APSEZ transforming India’s port sector: With industry leading average turnaround time (TAT) for ships at ~0.7 days, APSEZ has been a benchmark for other Indian ports and have driven the improvement in the TAT of major ports from ~5 days in 2011 to ~2 days currently.

Guidance for FY24: Cargo volumes expected at 370-390 MMT resulting in a revenue of Rs 24,000-25,000 Cr and EBITDA of Rs 14,500-15,000 Cr. Total capex during the year is expected to be Rs 4,000-4,500 Cr.

KEY BUSINESS HIGHLIGHTS – Q1 FY24 (YoY)

Operational Highlights

Ports Business

❖ Growth in cargo volume was led by containers (+15%), dry cargo (+10%) and liquids excl. crude (+7%). The automobile segment, though a small proportion of overall volumes, saw an 54% jump in volumes

❖ The non-Mundra domestic ports volumes grew at 17% Y-o-Y while Mundra volumes were down 2% due to cyclone ‘Biparjoy’

❖ The share of non-Mundra domestic ports increased to 58% in the cargo basket from 53% during Q1 FY23

Logistics Business

❖ Logistics rail volumes recorded a growth of 18% Y-o-Y to 131,420 TEUs

❖ GPWIS cargo volumes grew by 40% Y-o-Y to 4.35 MMT

❖ Total Rakes during the quarter increased to 95 (Container – 43, GPWIS – 42, Agri – 7, AFTO – 3) vs. 93 as of end March

Other Updates

❖ APSEZ concluded acquisition of Karaikal Port, and sale of Myanmar asset

❖ India’s largest transshipment port at Vizinjham to become operational by the year end

❖ At Mundra, container capacity expansion of 0.8 MTEUs to be completed by Q3 FY24, and five new railway handling lines being added to augment the container handling capacity by 30%

❖ MMLP count to increase to 12 in FY24 with additions of Loni ICD, Valvada ICD, and commissioning of Virochannagar MMLP

❖ Cyclone Biparjoy made landfall on the evening of 15th June and from 17th June the Mundra Port was back in operation, reflecting the resilience and preparedness of the port to withstand such extreme weather events

Financial Highlights

❖ Consolidated operating revenue grew by 24% Y-o-Y to Rs 6,248 Cr

❖ Consolidated EBITDA including forex impact grew by 80% Y-o-Y to Rs 3,765 Cr. Excluding forex impact consolidated EBITDA is Rs 3,754 Cr.

❖ Ports business EBITDA margin expanded by ~150 bps to 72% with improved realization and operating efficiencies

❖ Logistics business EBIDTA margin expanded by ~150 bps to 28% aided by increase in cargo volumes and sweating of assets

Guidance for FY2024

❖ Cargo volumes during the period to be 370-390 MMT

❖ Revenue for the period to be Rs 24,000-25,000 Cr

❖ EBIDTA for the period to be Rs 14,500-15,000 Cr

❖ Net Debt to EBITDA to be reduced to ~2.5x

❖ Capex for the period to be Rs 4,000-4,500 Cr

ESG Highlights and Awards

❖ Intensity improvements: As of Q1 FY24, emission intensity reduction of 47% and water intensity reduction of 47% from the base year (FY2016). The renewable electricity share of electricity in Q1 FY24 is around 14%.

❖ Carbon offsetting: APSEZ has completed mangrove plantation on ~4,000 Ha against its 2025 target of 5,000 Ha.

❖ Net-zero planning process: We are ready with net zero plan for submission to the Science Based Target Initiative (SBTi).

❖ Award: APSEZ recognized amongst the top 50 sustainable companies in India by the Business World.