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Adani Ports Shares in Focus After Release of Monthly Business Update

02 December 20244 mins read by Angel One
Adani Ports reported a growth of 21% YoY in total cargo handling during November 2024 to 36 million metric tonnes.
Adani Ports Shares in Focus After Release of Monthly Business Update
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Adani Ports and Special Economic Zone Limited (APSEZ) released its monthly business update for November 2024. The total cargo handled during the month amounted to 36 million metric tons (MMT), reflecting a 21% year-on-year (YoY) increase, driven primarily by containers.

For the year-to-date (YTD) period ending November 2024, APSEZ handled a total of 293.7 MMT of cargo, representing a 7% YoY growth. This growth was largely driven by containers, which saw a 19% increase, followed by liquids and gas, which grew by 7%.

Rail and GPWIS Volumes

  • Logistics Rail Volumes: APSEZ’s rail volumes grew by 10% YoY, reaching 0.42 million twenty-foot equivalent units (Mn TEUs).
  • GPWIS Volumes: Gross Private Wharfage and Integrated Services (GPWIS) volumes rose by 15% YoY, totalling 14.2 MMT.

Adani Group’s Response to Allegations

Following recent allegations from the US Department of Justice and the US Securities and Exchange Commission (SEC) against directors of Adani Green, the Adani Group issued a clarification. The group strongly denied the charges, calling them baseless. Since then, Adani Group shares have been in recovery mode. The group emphasised that as per the US Department of Justice, the charges are merely allegations, and the defendants are presumed innocent unless proven guilty. The Adani Group reaffirmed its commitment to maintaining the highest standards of governance, transparency, and regulatory compliance across all jurisdictions, assuring stakeholders of their law-abiding nature and full legal compliance.

H1 FY25 Performance Highlights

  • Cargo Volume: APSEZ achieved 220 MMT of cargo volume in the first half of FY25, reflecting a 9% YoY increase. The primary driver of this growth was containers, which saw a 19% YoY rise.
  • Mundra Port Milestone: Mundra Port reached a significant milestone by crossing the 100 MMT mark in just 181 days, with a total of 101.1 MMT handled in H1 FY25.
  • Vizhinjam Port Achievement: Vizhinjam Port docked the largest cargo ship ever to arrive in South Asia, the MSC Claude Girardet.
  • Rail and GPWIS Volumes: Rail volumes increased by 11% YoY to 0.31 Mn TEUs, while GPWIS volumes grew by 20% YoY to 10.7 MMT.
  • Container Volume at MMLPs: Container volume at Multi-Modal Logistics Parks (MMLPs) rose by 21% YoY, reaching 215,958 TEUs.

Financial Performance in H1 FY25

  • Operating Revenue: APSEZ reported operating revenue of ₹14,627 crore, an increase of 13% YoY.
  • Ports Revenue: Revenue from ports rose by 11% YoY to ₹12,824 crore.
  • Logistics Revenue: Logistics revenue increased by 17% YoY, reaching ₹1,159 crore.
  • EBITDA: Excluding forex adjustments, EBITDA grew by 21% YoY, reaching ₹9,217 crore.
  • Debt Metrics: The net debt to trailing twelve months (TTM) EBITDA ratio stood at 2x, a slight improvement from 2.3x in FY24.

On December 02, 2024, Adani Ports shares opened at ₹1,213.45 and touched the day high of ₹1,213.45 at 12:30 PM, reflecting a gain of around 1% from the previous close.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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