Adani Ports & Special Economic Zone Ltd Share Price – NSE  /  BSE

Marine Port & Services, Mid Cap

Adani Ports and Special Economic Zone has handled 420 MMT (+24% Y-o-Y) cargo in FY24 (including international ports), with domestic ports contributing Over 408 MMT cargo. It has also handled its highest ever monthly cargo volumes (incl. international ports) of over 38 MMT in March 2024. Ten of the company's ports and terminals handled record cargo volumes: Mundra 180 MMT, Tuna 10 MMT, Hazira 26 MMT, Mormugao 5 MMT, Karaikal 12 MMT, Ennore 13 MMT, Kattupalli 12 MMT, Krishnapatnam 59 MMT, Gangavaram 37 MMT and Dhamra 43 MMT.

During FY24, more than one-fourth of all India cargo volumes was routed through APSEZ ports. This significant contribution by APSEZ underscores its active role in driving India's growth trajectory. It also shows that India's largest port operator comfortably surpassed its cargo volume guidance of 370 MMT - 390 MMT provided at the start of the financial year.

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APSEZ has handled a 420 million metric tons (MMT) across its domestic and international ports, with domestic ports contributing over 408 MMT. On a year-on-year basis, the company’s total cargo volume grew by 24% for financial year 2024.

Ten of APSEZ's ports and terminals set new cargo volume records, including Mundra port recorded 180 MMT, Tuna port recorded 10 MMT, Hazira port recoreded 26 MMT, Mormugao port recorded 5 MMT, Karaikal port recorded 12 MMT, Ennore port recorded 13 MMT, Kattupalli port recorded 12 MMT, Krishnapatnam port recorded 59 MMT, Gangavaram port recorded 37 MMT and Dhamra port recorded 43 MMT.

During FY24, more than one-fourth of all India cargo volumes were routed through APSEZ ports. This significant contribution by APSEZ underscores its active role in driving India’s growth trajectory. It also shows that India’s largest port operator comfortably surpassed its cargo volume guidance of 370 MMT - 390 MMT provided at the start of the financial year, stated by company in regulatory filing.

“What makes these accomplishments noteworthy is that they were achieved despite multiple challenges, such as the global trade disruptions caused by the red sea crisis, the Russia-Ukraine conflict and issues at the panama canal, and disruption of operations due to Cyclone Biparjoy and Cyclone Michaung” stated by the company in regulatory filing.

In the container segment, the ports at Mundra, Hazira, Kattupalli and Ennore handled record volumes. Around 44% of the containerised seaborne cargo in India moves through APSEZ ports. Its container volumes have grown by 2X of India’s container growth around 11% as compared to the all-India growth of around 5% in the last 5 years. Mundra port handled record container volumes by rail of 1.9 MTEUs, a growth of 12% over last year. Till February 2024, the double stack coefficient was 59% as compared to last year’s 54%.

In the dry cargo segment, ports such as Tuna, Mormugao, Karaikal, Krishnapatnam, Gangavaram and Dhamra handled record volumes this financial year. Dhamra berthed its first LNG-powered cape-sized vessel, MV Ubuntu Unity, while Krishnapatnam berthed it’s largest-ever vessel with dimensions of LOA 335.9 m and beam 42.9 m. With regard to liquid cargo, Mundra, Kattupalli, Krishnapatnam and Dhamra handled record volumes.

Logistics volumes continue to witness record growth with year to date rail volumes of around 379,000 TEUs (over 23% YoY) and GPWIS (general purpose wagon investment scheme) volumes of 12.3 MMT (over 44% YoY). The highest-ever monthly GPWIS volumes were recorded in November 2023 at 1.72 MMT.

Karan Adani, managing director, APSEZ, said, “While it took 14 years for the company to achieve the first 100 MMT of annual cargo throughput, the second and third 100 MMT throughputs were achieved in 5 years and 3 years. The latest 100 MMT mark has been achieved in less than two years. This is a testament to our ongoing commitment and efforts towards enhancing operational efficiencies and maintaining our position as a top port operator in the industry.”

Adani Ports & Special Economic Zone is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi product Special Economic Zone (SEZ) and related infrastructure contiguous to port at Mundra.

The company’s consolidated net profit soared 67.87% to Rs 2,208.41 in Q3 FY24 as against with Rs 1,315.54 crore posted in the same period a year ago. Revenue from operations jumped 44.59% year on year to Rs 6,920.10 crore during the quarter.

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The key equity benchmarks traded with limited losses in early trade. The Nifty traded below the 22,100 mark. Barring Metal index all the other sectoral indices on the NSE were traded in red.

At 09:25 IST, the barometer index, the S&P BSE Sensex, was down 164.67 points or 0.23% to 72,667.27. The Nifty 50 index declined 43.60 points or 0.20% to 22,053.15.

In the broader market, the S&P BSE Mid-Cap index added 0.02% while the S&P BSE Small-Cap index fell 0.14%.

The market breadth was positive. On the BSE, 1,580 shares rose and 1,400 shares fell. A total of 204 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,309.76 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,764.87 crore in the Indian equity market on 22 March, provisional data showed.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper rose 0.03% to 7.089 from previous close of 7.087.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.3450, compared with its close of 81.6150 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement declined 0.20% to Rs 65,893.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.22% to 102.24.

The United States 10-year bond yield fell 0.28% to 4.239.

In the commodities market, Brent crude for May 2024 settlement dropped 2 cents or 0.02% to $86.75 a barrel.

Stocks in Spotlight:

Adani Ports and Special Economic Zone rose 1.26% after the company has entered into a definitive agreement to acquire 95% stake of Gopalpur Ports Limited (GPL) from the existing shareholders [about 56% stake from SP Port Maintenance Private Limited (SP Group) and about 39% stake from Orissa Stevedores Limited (OSL)] of GPL. The equity consideration for 95% stake is Rs. 1,349 crore, with an enterprise value of Rs. 3,080 crore.

Bharti Airtel fell 0.94%. Bharti Hexacom, a subsidiary of the company, is launching an initial public offering (IPO) to allow existing shareholder TCIL to sell a portion of its holdings. Telecommunications Consultants India (TCIL) will offload 15% stake through offer for sale.

Ultratech Cement declined 0.48%. The company said that it has commissioned 1 million ton per annum (MTPA) brownfield cement capacity at Roorkee, Uttarakhand taking the unit’s capacity to 2.1 MTPA.

Global Market:

Asian stocks traded mixed as anticipation of more key economic readings this week kept sentiment on edge.

U.S. stocks took a breather on Monday amid speculation the Federal Reserve will be able to cut interest rates as soon as June.

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The acquisition is made at an enterprise value of Rs 3,080 crore, and the transaction is subject to statutory approvals and fulfilment of other conditions precedents.

Gopalpur port is located on the east coast of India and has the capacity to handle 20 MMTPA. The Government of Odisha awarded a 30-year concession to GPL in 2006, with the provision of two extensions of 10 years each.

As a deep draft, multi-cargo port, Gopalpur handles a diverse mix of dry bulk cargo, including iron ore, coal, limestone, ilmenite, and alumina. The port plays an important role in supporting the growth of mineral-based industries in its hinterland, like iron & steel, alumina and others.

The concessionaire has full flexibility to design and expand the port as per the market demand. GPL has received more than 500 acres of land on lease for development, with an option to receive additional land on lease to meet future capacity expansions.

The port is well connected with its hinterland through the national Highway NH16 and a dedicated railway line connects the port with the Chennai-Howrah main line.

In FY’24, GPL is estimated to handle about 11.3 MMT cargo (YoY growth - 52%) and earn a revenue of Rs 520 crore (YoY growth - 39%) and achieve EBITDA of Rs 232 crore (YoY growth - 65%).

Adani Ports expects Gopalpur Port to record strong growth and margin expansion in FY’25, with opportunities already identified for achieving higher operational efficiencies and infra debottlenecking, implying further value accretion for APSEZ shareholders.

Karan Adani, managing director of APSEZ, said, “The acquisition of Gopalpur Port will allow us to deliver more integrated and enhanced solutions to our customers.

Its location will allow us unprecedented access to the mining hubs of Odisha and neighboring states and allow us to expand our hinterland logistics footprint.

GPL will add to the Adani Group’s pan-India port network, east coast vs west coast cargo volume parity and strengthen APSEZ’s integrated logistics approach.”

Adani Ports & Special Economic Zone is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi product Special Economic Zone (SEZ) and related infrastructure contiguous to port at Mundra.

The company’s consolidated net profit soared 67.87% to Rs 2,208.41 in Q3 FY24 as against with Rs 1,315.54 crore posted in the same period a year ago. Revenue from operations jumped 44.59% year on year to Rs 6,920.10 crore during the quarter.

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