Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest transport utility recently announced its results for the fourth quarter and year ending 31 March 2022.
APSEZ’s consolidated revenue (excluding Gangavaram) grew by 27% to Rs 15,934 crore on the back of overall growth registered by its three main business segments – Ports, Logistics and SEZ.
Karan Adani, CEO and director of APSEZ, said, “FY22 has been a stellar year for APSEZ, with multiple milestones for itself and new benchmarks for the Indian maritime industry.”
The company did a record cargo volume of 312 million tonnes (MT) with Mundra port alone handling 150MT, a first for any commercial port in the country. Growth in cargo volume, better realization and addition of Sarguja Railway (SRCPL) enabled a 21% increase in port revenue to Rs.12,964 crore.
Revenue from the logistics business stood at Rs 1,208 crore, registering a growth of 26% due to increased container and terminal traffic with an increase in available rolling stock, both for container and bulk cargo.
On its port business, APSEZ said in FY22, it handled 312MT of cargo (including Gangavaram Port, which handled 30.03MT of cargo volume) as against 247MT in FY21 thus registering a growth of 26% against 5% growth in all India cargo volume. Growth in cargo volume was led by dry cargo, which recorded a 42% increase, followed by containers (+14%), and liquids (+19%).
In the container segment, APSEZ continued its growth journey and handled 8.2 million Twenty-Foot Equivalent (TEU), implying a growth of 14% compared to the 11% growth achieved in all India container volumes.
This year saw several acquisitions and several major projects won by APSEZ, in line with its ambition to become the world’s largest port by 2030. These developments include the purchase of the remaining 25% stake in KPCL; the acquisition of the Sarguja Railway Company for a 70 km railway line asset that has an annuity-like business model; purchase of 41.9% stake in Gangavaram port and signing of agreement with promoters for acquisition of remaining 58.1% stake after NCLT approval among other achievements.
The acquisition in FY22 implies an investment of around Rs 11,400 crore for APSEZ and is successfully managed along with an organic budget of around Rs 3,750 crore while ensuring that the net debt to EBITDA ratio remains unchanged at ~3.4xAdani said APSEZ has achieved a lot on the logistics front. “We continue our journey to become India’s largest transport utility with the achievement of various milestones by our logistics business. This includes investment in around 100 trains, eight MMLPs in operation and a total grain silo capacity of around 1.2MT, all by FY23. With 5 million ft. square meters of warehousing capacity under construction/operations, we are on track to reach our guided capacity of 60 million square feet.”
He added that they are confident the growth trajectory will continue until next year. “We are confident about the growth prospects of APSEZ in FY23, given the expected growth in India’s GDP and the boost to the Indian iron and steel industry from China’s decision to limit its steel production and the absence of exports from Russia. APSEZ is fully prepared to ride this wave. We remain committed to the ambition -our ambition is to make our ports carbon neutral by 2025, and after that progress on the net zero journey, for which we will release our plan later this year.”