Adani Ports and Special Economic Zone Limited (APSEZ) has reported its quarterly results this week. To everyone’s surprise, the largest integrated logistics company in the country has posted a 77% spike in the net profits to Rs.1342cr YoY.
Revenue from operations in April to June period shot up to Rs.4556.8cr, 98% higher than in the same quarter last FY and the reason is quite apparent -a low base during 2020.
Cargo volumes had touched new lows last year due to lockdowns across the world and therefore, very high rates of growth.
The bright side here is the extent of recovery, which is well above the anticipated and projected rates.
All ports of APSEZ registered high double-digit growth. The port’s EBITDA margins have improved to 71% as small players in the segment reeled under a capital crunch and the company used the opportunity to gain further market share – cargo market share increased by 310 bps to 28.6% and container market share increased by 163 bps to 43%.
The company was also on an acquisition spree that pushed the cargo volumes up. The major and significant ones being Krishnapatnam Port(acquired the remaining 25% to make it a 100% subsidiary) and Gangavaram Port(31.5%), among others. This was done as a part of establishing a network of east and west coast ports.
Owing to a quicker than expected recovery across the world, the cargo volume guidance has been revised to 350-360 million metric tonnes(MMT) from 310-320 MMT. Consolidated revenue guidance has been raised to Rs 18,000-18,800 crore from Rs 16,000-16,800 crore.
