Adani Ports and Special Economic Zone Limited (APSEZ) announced its Q2 FY25 results, showcasing a substantial year-on-year (YoY) improvement across key financial metrics. The company’s robust performance was highlighted by increases in cargo volumes, revenue, and profitability, demonstrating APSEZ’s continued strength in India’s logistics and port sector.
Key Financial Highlights:
- Cargo Volume Growth: APSEZ reported a significant 10% YoY increase in cargo volume for Q2, handling 111 million metric tonnes (MMT) compared to 101 MMT in Q2 FY24. For the first half (H1) of FY25, cargo volumes rose by 9% YoY to 220 MMT, driven primarily by container volume, which grew 19% YoY.
- Revenue Increase: The company recorded revenue from operations of ₹7,067 crore in Q2 FY25, reflecting a 6% growth from ₹6,646 crore in the same quarter last year. For H1 FY25, revenue increased by 13% YoY to ₹14,627 crore, underpinned by strong contributions from the ports and logistics segments.
- EBITDA Growth: EBITDA for Q2 FY25 saw an impressive 13% YoY rise, reaching ₹4,369 crore, up from ₹3,880 crore in Q2 FY24. The EBITDA margin also improved, standing at 62% compared to 58.4% in the same quarter last year, underscoring the company’s efficiency in managing costs and maximizing profitability.
- Net Profit Surge: APSEZ reported a strong YoY increase of 37% in net profit, reaching ₹2,413 crore in Q2 FY25 compared to ₹1,762 crore in Q2 FY24. For H1 FY25, net profit soared by 42% YoY to ₹5,520 crore, reflecting APSEZ’s operational excellence and strategic expansion in its port network.
Operational and Strategic Developments:
- APSEZ achieved a major milestone at Mundra Port, crossing the 100 MMT mark in just 181 days. Additionally, the Vizhinjam port docked the largest cargo ship to ever arrive in South Asia, further enhancing APSEZ’s status as a significant player in the global port and logistics space.
- The company reiterated its FY25 guidance, targeting a cargo volume of 460-480 MMT and expecting to hit the upper end of its EBITDA guidance range of ₹17,000-18,000 crore. The focus on expanding infrastructure and achieving operational efficiency is evident from these projections.
Credit Ratings and Financial Position:
APSEZ’s strong financial performance and solid business model have been recognized by credit rating agencies. The company has secured an “AAA” rating from CRISIL, ICRA, CARE, and India Ratings, reflecting its stability and strong financial position. The net debt to trailing twelve months (TTM) EBITDA ratio stood at 2x, showcasing a healthy debt profile and manageable leverage.
Outlook:
APSEZ’s Q2 performance underscores its strategic position in India’s logistics sector and its capability to achieve steady growth despite market fluctuations. With enhanced cargo handling capabilities, strong EBITDA growth, and favorable profit margins, APSEZ is well-positioned for sustained expansion. The positive outlook for FY25, backed by ambitious cargo volume and EBITDA targets, reflects APSEZ’s commitment to cementing its leadership in the port and logistics space.
