Adani Ports announces Q1 FY21 Results

• Mundra Port becomes largest container port in India surpassing JNPT.
• APSEZ Achieved a throughput of 41.5 MMT
• Operating Revenue of Rs.2,293 cr.
• Consolidated EBITDA of Rs.1,438* cr.
• Port EBIDTA Margin maintained at 70%
• Reported PAT of Rs.758 cr.

Ahmedabad, August 11^th, 2020: Adani Ports and Special Economic Zone Limited (“APSEZ”), the largest integrated logistics player in India, a part of globally diversified Adani Group today announced its operational and financial performance for the first quarter ended 30^th June, 2020.

Lockdown measures to tame the spread of COVID-19 resulted in lower Import and export, impacting cargo throughput in first quarter of FY21.

There has been a steady increase in cargo throughput across Ports from July 2020. During the month of July 2020, APSEZ handled cargo volume of 18.30 MMT, a growth of 6% on year on year basis and 31% over June 2020. This trend gives us confidence that worst is behind us and going forward cargo volume in FY21 is expected to stabilize.

Financial Performance: -                                                                      (Rs in cr.)          

Due to all India lockdown imposed from last week of March 2020, cargo throughput witnessed a decline of 27% resulting in 18% decline in consolidated revenue. In-spite of decline in cargo throughput, APSEZ was able to maintain Port EBIDTA margin at 70% due to its strategy of diversifying cargo mix, ability to maintain realization and reduce operating costs.

Shift from road to rail and increase in services enabled Adani Logistics to achieve a revenue of Rs.200 cr. in Q1 FY21 vs Rs.181 cr. in Q1 FY20 a growth of 10% on a YoY basis.

Operational performance and other important developments: -

• Mundra port becomes the largest container handling port in India by handling 0.97 mn TEUs in Q1 FY21 surpassing JNPT volume of 0.85 mn TEUs.
• As part of its cargo diversification plan APSEZ handled 2,46,000 tonnes of LPG and 3,74,000 tonnes LNG at Mundra Port during Q1 FY21.
• In Container, APSEZ handled 1.23 mn TEUs as against 3.22 mn TEUs handled at all India level.
• We are 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.
• In Logistics, Rail volume increased by 37% from 56,060 TEUs to 76,925 TEUs.
• ALL currently operates 60 rakes and continues to be the largest private rail operator in India.
• APSEZ is one amongst 43 Indian companies who have signed a commitment letter to Science Based Targets initiative. The SBTi defines and promotes best practices in science-based target setting and independently assesses companies’ targets.
• APSEZ 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.
• Mr. P.S. Jayakumar appointed as an Independent director, with this, Independent directors constitute 55.5% of the board.
• We have received approval from CCI on Krishnapatnam Port acquisition and expect it to be completed in the current quarter.
• Snowman deal – Both the parties mutually agreed not to peruse the deal further. A settlement agreement has been signed. ALL will continue to be a minority shareholder.

Awards :

• Dahej Port received “International Safety Award, 2020” from British Safety Council, London.

Mr. Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “In first quarter of FY21, we were able to perform operationally at par with pre COVID levels. We kept supply chain running and stood by our customers to prove as a bankable service provider at all times ensuring stronger customer relationships and stickiness in cargo.

During this period, we relooked at fundamentals of port operations and realigned costs, thus maintaining Port EBIDTA margin of 70%.

With the worst behind us, we have emerged operationally stronger and resilient to externalities. 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 Science Based Targets initiative (SBTi) and Task Force on climate related financial disclosure (TCFD) for reducing carbon emission with a commitment to become carbon neutral by 2025.

We have diversified our board by inducting Mr. P.S. Jayakumar as an Independent director, with this Independent director constitute 55.5% of the board.

The resilience in the business is a testimony of the team’s commitment to excel.”