Adani Ports top line boosted by 38.33 per cent in Q1FY16

Adani Ports and Special Economic Zone (APSEZ), India’s largest port developer and part of Adani Group, recently declared its June quarter consolidated results. The company reported a healthy 38.33 per cent year on year growth in total revenue, which stood at Rs 1748.37 crore in Q1FY16 as compared to Rs 1263.92 crore in Q1FY15. As a result its PAT increased by 12.83 per cent to Rs 640.88 crore in Q1FY16 against Rs 568 crore in Q1FY15.

APSEZ's growth in operating revenue, mainly due to the increasingly large baseline of cargo volume. It contains an increase of 17 per cent in consolidated cargo across all ports handled by the company which is 40 Million Metric Ton (MMT) in Q1FY16, against 32 MMT in Q1FY15. Also, in case of containers, the Mundra port handled 748000 twenty-foot equivalent units (TEU) in Q1FY16 as against 681000 TEU’s in Q1FY15 resulting in a 10 per cent growth as compared to growth of 3 per cent aggregate growth in container volumes at all the major ports.

As well as its twin ports of Hazira and Dahej handled cargo of 5.42 MMT in Q1FY16 thereby showing a growth of 22 per cent compared to the same period of last year. Segment wise company's revenue from Port & SEZ activities jumped by 42.03 per cent year on year basis to reach its contribution about 87.89 per cent of consolidated revenue and balance revenue coming from other segments, which represents mainly logistics, transportation and utility business.

The Company's total operating expenditure increased by 36.30 per cent to Rs 603.4 crore in Q1FY16 against Rs 442.71 crore in Q1FY15. APSEZ's expenditure increased mainly due to its operation cost, which is jumped by a 31.39 per cent to Rs 444.41 crore in Q1FY16 as compared to Rs 338.23 crore in Q1FY15. Its other expenses were also raised by 47.98 per cent as well as its employee cost incremented by 48.26 per cent compared to the same period of last year.

The EBITDA boosted by 39.42 per cent on an annual basis to Rs 1144.97 crore in Q1FY16 while its EBITDA margin expanded by 52 basis points to 65.49 per cent as compared to the same period of last financial year, led by the increasingly large baseline of cargo volume. While, its PBT up by just 8.78 per cent from Rs 643.62 crore in Q1FY15 to reach Rs 700.11 crore in Q1FY16. APSEZ's depreciation expenses increased by 48.17 per cent to Rs 260.59 crore and its interest cost increased by 52.03 per cent to Rs 318.01 crore compared to the same period of last financial year. Its PAT margin after minority interest contracted by 828 basis points to reach 36.66 per cent on an annual basis.

APSEZ's shareholding pattern indicates that FII holdings expanded by 675 basis points to 24.87 per cent and DII holdings expanded by 986 basis points to 12.32 per cent during Q1FY16 as compared to the same period of last year.

APSEZ received the letter of award from the Government of Kerala for the development of the strategically located Vizhinjam port. APSEZ also received “BBB-” international investment grade rating from all three international rating agencies (Standard & Poor, Moody and Fitch). APSEZ is the only infra company, out of India, to have received this rating.

The Adani group recently announced the de-merger of the group and moved away from its present holding company structure and instead now has four independently listed entities for the four major business segments. Adani Enterprises has demerged its ports, power and transmission businesses in Adani Ports and Special Economic Zone, Adani Power and Adani Transmission, respectively.