Adani Ports and Special Economic Zone Q4 Results 2022: Net Profit falls by 21.78% for Q4FY22

On 24th May 2022,  Adani Ports and Special Economic Zone announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- Adani Ports and Special Economic Zone reported a profit before tax of Rs.1170.43 Crores for Q4FY22 from Rs.1539.05 Crores in Q4FY21, a decline of 23.95%

- The company's revenue from operations rose 6.57% to Rs.3845.03 Crores in the quarter under review from Rs.3607.9 Crores in the same quarter last fiscal.

- The total income for the quarter stood at Rs.4417.87 from Rs.4072.42 in Q4FY21, a growth of 8.48%

- Adani Ports and Special Economic Zone reported a net profit of Rs.1033.02 Crores from Rs.1320.69 Crores in Q4FY21, drop by 21.78% 

FY2022: 

- The company reported a profit before tax at Rs.5541.16 Crores for FY2022 from Rs.6292.01 Crores in FY2021, with a drop of 11.93%

- The company's revenue from operations rose by 26.96% to Rs.15943.03 Crores for the year from Rs.12549.6 Crores in FY2022.

- The total income for the year stood at Rs.18088.81 from Rs.14519.83 in FY2021, a growth of 24.58%

- Adani Ports and Special Economic Zone reported a Net profit of Rs.4795.24 Crores with a drop of 5.02% YoY.

Operational Highlights:

Port Business:

- APSEZ continues to outperform the market. During FY22, it handled 312 MMT of cargo (including Gangavaram Port, which handled cargo volume of 30.03 MMT) versus 247 MMT in FY21 thus registering a growth of 26% compared to 5% growth in all India cargo volume. 

- The growth in cargo volume was led by Dry cargo (+42% increase), followed by containers (+14%), and liquids (+19%). 

- In the container segment, APSEZ continued its growth journey and handled 8.2 Mn TEUs, implying a growth of 14% vs. 11% growth achieved at all India container volume. 

- APSEZ is focused on achieving east coast vs. west coast parity. Cargo volumes on the eastern ports grew by 84% and those on the west grew by 6% thereby improving the cargo ratio between the west coast and east coast to 62:38 (from 74:26 earlier). 

- Non-Mundra ports in the portfolio are growing faster and have contributed 52% to the cargo basket which is a growth of 10% points. 

- Mundra continues to be the largest container handling port with 6.5 Mn TEUs which is 0.83 Mn TEUs higher than JNPT.

Logistics:

- Adani Logistics (ALL), the largest and most diversified private rail operator in India, registered a 29% growth in rail volume to 403,737 TEUs and a 19% growth in terminal volume to 301,483 TEUs. 

- Adani Logistics has expanded its rolling stock and added 14 new bulk rakes under the GPWIS scheme, taking the total number of rakes to 75. 

- In the warehousing segment, ALL added 0.43 mn. sqft during the period which is a growth of 108%

FY2023 Outlook:

- With an increase in power demand and a higher fuel cost allowed as a pass-through by some states, a recovery in coal volumes is underway 

- With a steel production cap in China and the absence of steel exports from Russia, India will see an increase in EXIM of steel and coking coal 

- Gangavaram Container Terminal to commence operations from Q2FY23 with an initial volume estimate of 150,000 TEUs per annum 

- Dhamra LNG project is expected to commence operations by November 2022, which has a use or pay the contract for 4.5 MMTPA 

- In the logistics business order of 19 new rakes, ongoing construction of 4 mn sqft of warehousing space, two new MMLPs, and 1 MMT of new Agri Silo will provide revenue and EBIDTA boost 

- With various discussions ongoing for the development of new projects in the SEZ areas, the SEZ revenues are likely to see a jump

“FY22 has been a stellar year for APSEZ, with the achievement of various milestones for itself and new benchmarks for India’s maritime industry,” said Mr. Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ.

The Board has recommended a dividend of Rs.5 per share, which works out to a payout of Rs.1,056 Cr and is 22% of reported PAT.