Shares of this Adani company, involved in port infrastructure development and operations, announced the withdrawal of its $553 million loan request to the US International Development Finance Corporation (DFC) for developing a key terminal at Colombo Port.
Price Movement
During Thursday’s trading session, Adani Ports & Special Economic Zone Ltd’s reached an intra-day high of Rs.1,261.75 per share, rising 2.2 percent from its previous close of Rs.1,233.80 each. The shares have retreated since then and currently trading at Rs.
What happened
Adani Ports and Special Economic Zone (APSEZ) announced the withdrawal of its $553 million loan request to the US International Development Finance Corporation (DFC) for developing the Colombo West International Terminal (CWIT) in Sri Lanka.
In a filing on Tuesday, APSEZ stated the project would now be funded through internal accruals and its capital management plan. This decision follows recent bribery allegations by two US government agencies against Gautam Adani and other officials of the Adani Group.
In 2023, the U.S. Development Finance Corporation (DFC) approved a loan for a deepwater container terminal at Sri Lanka’s Port of Colombo. The funding went to Colombo West International Terminal (CWIT), a consortium including John Keells Holdings, the Sri Lanka Ports Authority, and Adani Ports.
Adani noted the port, operating at over 90 percent capacity since 2021, is the Indian Ocean’s largest transshipment hub. The new terminal aims to support growing Bay of Bengal economies, leveraging Sri Lanka’s strategic location on key shipping routes.
Distribution Network
Adani Ports and Special Economic Zone Limited, a key player in the Indian logistics and port sector, is the largest private port operator in the country. As part of the Adani Group, APSEZ oversees 12 ports and terminals, including the prominent Mundra Port, India’s first port-based Special Economic Zone (SEZ), and the Thiruvananthapuram deep-water transshipment port.
Also read…
Capacity Expansion
APSEZ’s planned capital expenditure (capex) will drive key strategic initiatives, including significant growth in cargo volumes, with a target of handling 460 to 480 million metric tonnes (MMT) in FY25 and reaching 500 MMT by 2025, supported by acquisitions such as Gopalpur Port and the upcoming Vizhinjam Port.
The company anticipates revenues between Rs.29,000 and Rs.31,000 crore for FY25, with EBITDA projected at Rs.17,000 to Rs.18,000 crore, driven by a robust logistics sector and a shift towards rail transport. Additionally, the capex will focus on expanding multimodal infrastructure, including improvements in warehousing and rail connectivity.
Management Guidance
APSEZ has provided its volume guidance for FY25, projecting a year-on-year growth of 10 percent to 14 percent, with the lower and upper ends of the guidance reflecting this expected range.
Financials
In its latest financial update, the company reported a revenue of Rs.7,067 crore in Q2 FY25, rising nearly 6 percent from Rs.6,646 crore in Q2 FY24. Similarly, the company reported a net profit of Rs.2,413 crore in Q2 FY25, rising 37 percent from Rs.1,762 crore during the same period.
About the Company
Adani Ports and Special Economic Zone Limited (APSEZ) is India’s largest private port operator, managing 15 ports, including the prominent Mundra Port. Established in 1998, it handles about 24 percent of India’s cargo and integrates logistics through its subsidiary, Adani Logistics Ltd.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
