Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Adani Ports & Special Economic Zone Ltd (BOM:532921, Financial) reported a 9% year-on-year increase in cargo volume to 220 million metric tons, showcasing strong operational performance.
- The company achieved significant financial growth with revenue, EBITDA, and PAC increasing by 6%, 13%, and 37% respectively in Q2 FY25.
- Adani Ports & Special Economic Zone Ltd (BOM:532921) received AAA ratings from four domestic rating agencies, highlighting its strong creditworthiness.
- The acquisition of Gopalpur Port and the planned commissioning of Vijinjam Port are expected to enhance the company's operational capacity and market presence.
- The logistics segment showed robust growth, with rail volumes increasing by 11% year-on-year, indicating successful strategic shifts from road to rail transport.
Negative Points
- The company faced disruptions in Gangavaram and Mundra due to inclement weather, impacting cargo volumes in these regions.
- Realizations for certain ports like Hazira and Dahej were reported to be down on a year-on-year basis, indicating potential pricing or volume challenges.
- The RINL steel plant, a significant contributor to Gangavaram's volumes, is facing a working capital crisis, affecting cargo throughput.
- Despite growth in logistics, margins in this segment have been lower compared to the previous year, suggesting cost pressures or competitive pricing.
- The SEZ and port development business reported lower revenues, raising questions about the consistency of income from lease rentals and development activities.
Q & A Highlights
Q: Can you provide updates on recent developments in Sri Lanka and other acquisitions?
A: We finalized the acquisition of Gopalpur and are seeing positive cargo volumes. Vijinjam is performing better than expected, and we are moving into the final phase of development. In Sri Lanka, operations are on track to start next year, and we have completed the acquisition of Astro Offshore. Haifa is operating 24/7 with increased car cargo, and Tanzania is ramping up well.
Q: How have recent labor strikes in the US affected Adani Ports?
A: The labor strikes in the US have not impacted our operations.
Q: What is the outlook for Gangavaram port and overall margin profiles?
A: Gangavaram is recovering from earlier disruptions. We expect a strong second half with increased cargo volumes, driven by agro and fertilizer commodities. Our port margin is at 72.5%, and we anticipate continued growth.
Q: Can you provide details on Tanzania's quarterly volume and revenue?
A: Tanzania's volume for the quarter was approximately 3 million tons. We do not currently disclose revenue and profitability figures for this asset.
Q: How confident are you in meeting the full-year volume guidance given the subdued first half?
A: We are confident in achieving our full-year volume guidance of 460 to 480 million tons, supported by strong container volumes and contributions from new acquisitions like Gopalpur and Tanzania.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
