In This Article:
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Revenue Growth: Up by 14% year-on-year for the first nine months of FY25.
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EBITDA Growth: Increased by 19% year-on-year.
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PAT Growth: Grew by 32% year-on-year.
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EBITDA Margin: Increased to 62% from 60% last year.
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Net Debt-to-EBITDA Ratio: Improved to 2.1 times from 2.3 times in FY24.
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FY25 Revenue Guidance: Upgraded to INR18,800 crores to INR18,900 crores from previous INR17,000 crores to INR18,000 crores.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Adani Ports & Special Economic Zone Ltd (BOM:532921) reported a 14% increase in revenue, a 19% rise in EBITDA, and a 32% growth in PAT year-on-year for the first nine months of FY25.
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The company upgraded its FY25 guidance to INR18,800 crores to INR18,900 crores, reflecting strong business momentum.
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Adani Ports has successfully closed significant business initiatives, including Astro Offshore, Gopalpur, Tanzania, and Ennore divestment, and ensured smooth commissioning of the Vizhinjam port.
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The company launched a new Trucking Management Solution, enhancing its logistics capabilities and streamlining the trucking supply chain for customers.
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Adani Ports is on track to commission its Colombo port, which is expected to contribute significantly to future growth.
Negative Points
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Margins at Gangavaram and Krishnapatnam ports were unusually low, primarily due to coal volume issues.
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The logistics business margins have decreased from 28% to 23%, with trucking expected to have around 10% margin.
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Despite the connection to the Western DFC, the expected growth in rail container volumes has not materialized, indicating potential inefficiencies or market resistance.
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The company's net debt increased to INR38,000 crores as of December 2024, up from INR35,200 crores in September 2024.
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There is a concern about the sustainability of high margins at Mundra port, which are attributed to a favorable container mix.
Q & A Highlights
Q: Can you explain the rationale behind the EBITDA guidance upgrade for FY25? A: Ashwani Gupta, CEO, explained that Adani Ports is evolving into an integrated transport solution company, not just a port volume company. Despite mixed reactions in commodity trade, the company has gained market share, particularly in the container business, which grew by 14.9% year-on-year. The financials are now less sensitive to cargo volume fluctuations due to contributions from marine and newly acquired businesses like Astro.
Q: With competitors announcing significant CapEx in logistics, how does Adani Ports plan to scale its logistics business? A: Ashwani Gupta, CEO, stated that Adani Ports aims to increase market share in inland logistics using its port network. The focus will be on CapEx in logistics, including Inland Container Depots (ICDs), warehousing, and expanding the trucking business. The company leverages its port network, trucking, and warehousing to strengthen its logistics position.