Newzdaddy Business Update

Record quarterly cargo, revenue, and EBITDA

• Revenue for the quarter increased by 24% Y-o-Y to Rs 6,248 Cr
• EBITDA for the quarter increased by 80% Y-o-Y to Rs 3,765 Cr
• PAT for the quarter increased by 80% Y-o-Y to Rs 2,119 Cr
• Cargo volume growth of 12% Y-o-Y to over 101 MMT, supported by containers growth of 15%
• APSEZ’s market share in India jumps around 200bps to 26%

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

(Amounts in Rs Cr)

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

 APSEZ delivered its strongest ever quarterly operating performance during Q1 FY24, with the 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 the 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 an 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 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 has 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 a 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 the end of March

 Other Updates

• APSEZ concluded the acquisition of Karaikal Port and the sale of Myanmar asset
• India’s largest transshipment port at Vizinjham to become operational by the year-end
• At Mundra, a container capacity expansion of 0.8 MTEUs is to be completed by Q3 FY24, and five new railway handling lines are 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 15^th June and from 17^th 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 an 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
• EBITDA 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 a mangrove plantation on ~4,000 Ha against its 2025 target of 5,000 Ha.
• Net-zero planning process: We are ready with a net zero plan for submission to the Science Based Target Initiative (SBTi).
• Award: APSEZ was recognized amongst the top 50 sustainable companies in India by the Business World.

 About Adani Ports & Special Economic Zone Ltd

Adani Ports and Special Economic Zone Ltd (APSEZ), a part of the globally diversified Adani Group has evolved from a port company to an Integrated Transport Utility providing an end-to-end solution from its port gate to customer gate. It is the largest port developer and operator in India with 6 strategically located ports and terminals on the west coast (Mundra, Dahej, Tuna, and Hazira in Gujarat, Mormugao in Goa, and Dighi in Maharashtra) and 6 ports and terminals on the East coast of India (Dhamra in Odisha, Gangavaram, and Krishnapatnam in Andhra Pradesh, Karaikal in West Bengal, and Kattupalli and Ennore in Tamilnadu) representing 26% of the country’s total port volumes, thus providing capabilities to handle vast amounts of cargo from both coastal areas and the hinterland. The company is also developing two transshipment ports at Vizhinjam, Kerala, and Colombo, Sri Lanka. The company is also operating the Haifa Port in Israel. Our Ports to Logistics Platform comprising port facilities, and integrated logistics capabilities including multimodal logistics parks, Grade A warehouses, and industrial economic zones, puts us in an advantageous position as India stands to benefit from an impending overhaul in global supply chains. Our vision is to be the largest ports and logistics platform in the world in the next decade. With a vision to turn carbon neutral by 2025, APSEZ was the first Indian port and third in the world to sign up for the Science-Based Targets Initiative (SBTi) committing to emission reduction targets to control global warming at 1.5°C above pre-industrial levels.

Disclaimer

Certain statements made in this press release may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Ports and Special Economic Zone Limited (“APSEZL”), the future outlook and growth prospects, and future developments of the business and the competitive and regulatory environment, and statements which contain words or phrases such as ‘will’, ‘expected to’, etc., or similar expressions or variations of such expressions. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in their business, their competitive environment, their ability to implement their strategies and initiatives and respond to technological changes, and political, economic, regulatory, and social conditions in India. This press release does not constitute a prospectus, offering circular or offering memorandum an offer, or a solicitation of any offer, to purchase or sell, any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of APSEZL’s shares. Neither this press release nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of APSEZL.

APSEZL, as such, makes no representation or warranty, express or implied, as to and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness, or correctness of any information or opinions contained herein. The information contained in this press release, unless otherwise specified is only current as of the date of this press release. APSEZL assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. APSEZL may alter, modify or otherwise change in any manner the content of this press release, without obligation to notify any person of such revision or changes.

No person is authorized to give any information or to make any representation not contained in and not consistent with this press release and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of APSEZL.

This press release does not constitute an offer or invitation to purchase or subscribe to any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe to any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration therefrom.

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