Adani Ports Q4: Net Profit Soars 76% YoY, Cargo Volumes Rise 21%; Rs 6/Share Dividend Declared

Adani Ports and Special Economic Zone (APSEZ) has announced strong financial results for the quarter that ended March 2024, showcasing robust growth and setting targets for the upcoming fiscal year. The largest ports operator in India reported a consolidated net profit of Rs 2,040 crore for Q4FY24, marking an increase of 76.2% from the corresponding period last year, where the net profit stood at Rs 1,158 crore.

The company's revenue from operations during the same quarter surged by 19% to Rs 6,896.5 crore compared to Rs 5,796.85 crore in the previous year. At the operational level, Adani Ports displayed healthy performance with Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rising by 24% to Rs 4,045 crore, and an improved EBITDA margin of 58.6% from 56.4% year-on-year.

Ashwani Gupta, Whole-Time Director & CEO of Adani Ports & SEZ, expressed satisfaction with the company's performance, stating, "APSEZ outperformed its upper end of guidance provided at the beginning of the financial year on cargo, revenue, and EBITDA by 6%-8%."

One of the key highlights of the quarter was the achievement of incremental cargo volumes of 100 MMT (Million Metric Tonnes) in less than two years. APSEZ is now positioned strongly to achieve 500 MMT of cargo volumes in 2025, aided by the recent acquisition of Gopalpur Port and the scheduled commissioning of Vizhinjam Port in the current year and WCT next year.

In FY24, Adani Ports recorded a significant revenue growth of 28% year-on-year, reaching Rs 26,711 crore, with the ports business revenue witnessing a remarkable 30% jump and the logistics business contributing a 19% increase. The company reported a net profit of Rs 8,104 crore, up 50% from the previous fiscal year.

Furthermore, Adani Ports demonstrated growth in domestic cargo volumes, which surged by 21% year-on-year, surpassing the 7.5% growth recorded in India's overall cargo volumes for FY24. The company's EBITDA (excluding forex) for the fiscal year jumped by 24% to Rs 15,864 crore, with the ports business contributing Rs 15,246 crore and logistics business Rs 540 crore. Domestic port EBITDA margin also expanded by approximately 150 basis points, driven by better asset utilization.

Looking ahead, Adani Ports has set guidance for FY2025, aiming for cargo volumes of 460-480 MMT, revenue in the range of Rs 29,000-31,000 crore, and EBITDA between Rs 17,000-18,000 crore. The company also targets maintaining a net debt to EBITDA ratio of 2.2-2.5x and plans a capex in the range of Rs 10,500-11,500 crore for the period.

In addition to its financial achievements, the board of directors of Adani Ports declared a dividend of Rs 6 per equity share of Rs 2 face value for the financial year 2023-24. The record date for determining entitlement to the dividend has been set for Friday, 14th June 2024, with the dividend expected to be paid on or after 30th June 2024.

The shares of Adani Ports & SEZ ended Thursday's trading session with gains of more than 1% at Rs 1,341.20 per share on the National Stock Exchange (NSE). The stock has gained a little more than 100% in the last one year.