Adani Ports forecasts cargo volumes of 370-390 mt in FY24, with revenue of Rs 24,000-25,000 crore and Ebitda of Rs 14,500-15,000 crore.
Adani Ports and Special Economic Zone Ltd (Adani Ports) recorded record revenue, Ebitda, and profit statistics for the June quarter, prompting Nuvama Institutional Equities to recommend a target price of Rs 958, representing a possible 22% upside for the Adani group stock. According to the brokerage, the recent acquisition of Karaikal is complete, and the port, along with the newly acquired Haifa port, is ramping up well. It was also mentioned that Adani Ports’ management has maintained its FY24 guidance. The brokerage is optimistic about Adani Ports’ prospects.
“All in all, operational numbers were strong, with Adani Ports increasing market share by 200 basis points,” the firm said, maintaining its ‘Buy’ rating on the company. Adani Ports continues to diversify and expand across the logistics value chain, according to Nuvama, and its rapid expansion in logistics is very synergistic with its ports business.
Adani Ports has forecast cargo volumes of 370-390 mt for FY24, with revenue of Rs 24,000-25,000 crore and Ebitda of Rs 14,500-15,000 crore. The total capex for the year is expected to be between Rs 4,000 and Rs 4,500 crore. Nuvama stated that Adani Ports’ guidance was reasonable. More crucially, the logistics industry continues to outperform peers, with three new MMLPs added this year, according to the company. Nuvama expects return ratios and debt indicators to improve in the next years due to solid growth and careful capex investment.
“In accordance with Adani Ports’ expansion plan, Mundra container capacity expansion of 0.8MTEUs, as well as five new rail lines, should be completed by Q3FY24, increasing container-handling capacity by 30%.” Furthermore, Adani Ports aims to have a warehouse capacity of 60 million square feet, with an annual expansion of 10 million square feet. “Inorganic acquisitions on the port side, combined with multifold capacity creation in the logistics business, should provide Adani Ports with multi-year growth prospects,” Nuvama added.
The Adani group firm reported an 82.57 percent year-on-year (YoY) increase in net profit for the June quarter, at Rs 2,114.72 crore, compared to Rs 1,158.28 crore in the same period last year. Analysts expected the Adani group firm to declare a profit increase of up to 70% year over year. Revenue increased by 23.51 percent year on year to Rs 6,247.55 crore, up from Rs 5,058.09 crore in the previous quarter. Analysts predicted that sales would increase by 15-20% year on year.
Adani Ports reported that consolidated Ebitda including forex impact increased by 80% year on year to Rs 3,765 crore. Excluding the impact of foreign exchange, consolidated Ebitda was Rs 3,754 crore. Adani Ports said its Ebitda margin for the ports sector increased by 150 basis points to 72% due to enhanced realisation and operating efficiencies. According to the company, the logistics business’s Ebitda margin increased by 150 basis points to 28% as cargo volumes increased and assets were sweated.