Adani Ports and Special Economic Zone (APSEZ) Limited reported 26% decline in consolidated net profit to Rs 758 crore for the first quarter ending June 30. The country’s largest integrated logistics player had clocked a consolidated profit of Rs 1,028.69 crore in the corresponding period a year earlier, the company said in a BSE filing.
Its total income declined to Rs 2,749.46 crore for the first quarter, as against Rs 3,216.92 crore in the year-ago period.
Consolidated EBITDA shrunk 22% to Rs 1,438 crore in the June quarter from Rs 1,843 crore recorded in the same period last year. EBITDA margin was at 63% as on June 30, 2020 as against 66% during the same period in 2019.
Cargo throughput witnessed a decline of 27% resulting in 18% decline in consolidated revenue to Rs 2,293 crore in Q1 FY21. Despite that, APSEZ was able to maintain Port earnings before interest, taxes, depreciation, and amortisation (EBIDTA) margin at 70% due to its strategy of diversifying cargo mix, ability to maintain realisation and reduce operating costs. The company said it achieved a throughput of 41.5 million tonnes across its nine operating ports in India during the first quarter.
Shift from road to rail and increase in services enabled Adani Logistics Ltd (ALL) to achieve revenue of Rs 200 crore in Q1 FY21 vs Rs 181 crore in Q1 FY20, a growth of 10 per cent on a Y-O-Y basis, it said. Rail volumes increased by 37% from 56,060 TEUs to 76,925 TEUs in Q1 FY21. ALL currently operates 60 rakes and continues to be the largest private rail operator in India.
In terms of operational performance, Mundra Port of APSEZ became the largest container port in India by handling 0.97 million TEUs in Q1 FY21, surpassing JNPT volume of 0.85 million.
As part of its cargo diversification plan, APSEZ handled 246,000 tonnes of LPG and 374,000 tonnes LNG at Mundra Port during Q1 FY21.
In container terms, APSEZ handled 1.23 million TEUs Q1 FY21 as against 3.22 million TEUs handled at all India-level, it said, adding that the company is progressing towards achieving east coast and west coast parity in terms of distribution of assets and hinterland reach. In Q1 FY21, in terms of volume handled, this is at 20%:80% against 17%:83% in Q1 FY20, the company said.
“In the first quarter of FY21, we were able to perform operationally at par with pre-COVID levels. We kept supply chains running and stood by our customers to prove as a bankable service provider at all times ensuring stronger customer relationships and stickiness in cargo,” Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ, said in a statement. “With the worst behind, APSEZ has emerged operationally stronger and resilient to externalities.”
There has been a steady increase in cargo throughput across Ports from July 2020. During July 2020, APSEZ handled cargo volume of 18.30 million tonnes, a growth of 6% on Y-O-Y basis and 31% over June 2020. This trend, the company said, gives confidence that worst is behind and, going forward, cargo volume in FY21 is expected to stabilise.
APSEZ is one amongst 43 Indian companies who have signed a commitment letter to Science Based Targets initiative (SBTi). The company has also signed commitment as a supporter to the Taskforce on Climate Related Financial Disclosure (TCFD) which develops voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.
About Krishnapatnam port acquisition, the company said that they have received approval from CCI on Krishnapatnam Port acquisition and expect it to be completed in the current quarter.
“Our focus continues on further improving efficiencies, reducing costs and closing out value accretive acquisitions namely Krishnapatnam Port and Dighi Port. We are happy to inform that we have signed up with SBTi and TCFD for reducing carbon emission with a commitment to become carbon neutral by 2025,” Adani said.
On Snowman deal, the company said that both the parties mutually agreed not to peruse the deal further. A settlement agreement has been signed and ALL will continue to be a minority shareholder.
The company also said it has diversified its board by inducting PS Jayakumar as Independent Director. “With this, independent directors constitute 55.5% of the board,” Adani noted.