Adani Ports and Special Economic Zone Ltd. (APSEZ) announced impressive financial results for the second quarter of the fiscal year 2024-25 on October 29, 2024. The company reported a net profit of ₹2,445 crore, marking a 40% increase compared to ₹1,748 crore in the same quarter last year. This growth reflects the company’s robust operational performance amidst challenging market conditions.
Revenue Growth and Performance Highlights
APSEZ’s revenue from operations also showed a positive trend, rising 6.3% year-on-year to reach ₹7,067 crore, up from ₹6,646 crore in the corresponding quarter of the previous year. Despite this growth, the revenue figure fell short of market expectations, which had estimated revenues around ₹7,267 crore. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 12.6% to ₹4,369 crore, with EBITDA margins expanding to 62% from 58.4% in the previous year.
Cargo Volume Performance
A key driver behind the profit and revenue growth was the significant increase in cargo volumes handled by APSEZ. The company reported a total cargo volume of 111 million metric tonnes (MMT) for the quarter, reflecting a 10% year-on-year increase. Notably, cargo volumes grew by 9.7% in July, 5% in August, and an impressive 14% in September, despite facing operational challenges due to a workers’ strike at its Gangavaram port.
Ashwani Gupta, the Whole-time Director and CEO of APSEZ, highlighted the company’s ability to diversify its marine fleet by adding 26 offshore support vessels during this period. He also noted robust growth in the logistics sector, which has enhanced last-mile connectivity through expansions in rakes, warehousing, and multi-modal logistics parks (MMLPs).
Strategic Developments and Future Outlook
APSEZ continues to focus on expanding its operational capabilities and is well-positioned to meet its fiscal year 2025 cargo volume guidance of between 460 MMT and 480 MMT. The company’s ongoing projects include capacity additions at key ports such as Gopalpur and Vizhinjam. Additionally, they have completed significant acquisitions that bolster their strategic position in the logistics sector.
The company has set ambitious revenue targets for FY25, projecting revenues up to ₹31,000 crore based on continued operational enhancements and market demand recovery. Following these announcements, shares of Adani Ports traded slightly lower at around ₹1,356.90 apiece on the National Stock Exchange (NSE).
Adani Ports Market Reactions
Despite the positive financial results, market reactions were mixed as APSEZ’s performance did not fully meet analysts’ expectations. The stock saw fluctuations post-announcement but remained relatively stable overall. Investors are keenly watching how APSEZ navigates its operational challenges while maintaining growth momentum.
