APSEZ Achieves Top Results for FY 2023, Anticipates Strong Growth Ahead - Karan Adani

Hyderabad: APSEZ has delivered an exceptional performance in both operational and financial aspects during FY23. The company has surpassed its previously set records for revenue and EBITDA, exceeding the guidance provided at the beginning of the year. Mr. Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone, attributed this success to the company's strategic focus on geographical and cargo mix diversification, as well as its transition to a transport utility model, which has paved the way for robust growth.

In his statement on the FY23 results, Mr. Adani highlighted the remarkable growth of APSEZ over the past five years, with revenue and EBITDA achieving a compound annual growth rate (CAGR) of 16-18%. Additionally, the company's domestic market share has risen by 800 basis points to approximately 24% in FY23. APSEZ made significant investments in FY23, totaling around Rs 27,000 Cr, including six major acquisitions amounting to approximately Rs 18,000 Cr and organic capital expenditure of around Rs 9,000 Cr.

These investments were primarily funded through internal accruals and existing cash reserves. Consequently, the gross debt-to-fixed asset ratio has significantly declined from 80% in FY19 to approximately 60% in FY23. Mr. Karan Adani emphasized that these investments, along with the five bid wins during the year, will enable APSEZ to achieve its targeted cargo volumes of 500 MMT by 2025 and expedite the transformation of its business model into a transport utility.

Operational Milestones: APSEZ achieved its highest-ever port cargo volumes of 339 MMT in FY23, representing a noteworthy year-on-year growth of approximately 9%. Furthermore, the company handled 300 MMT of cargo in just 329 days, surpassing the previous record of 354 days in FY22. Two of APSEZ's ports, Mundra and Krishnapatnam, secured positions among the top 10 ports in India based on their annual cargo volumes. Mundra remains the largest commercial port in India, handling 155 MMT of cargo (achieved in a record 355 days compared to 365 days in FY22) and maintaining its status as the leading container handling port with 6.64 Mn TEUs in FY23 (10% higher than its closest competitor).

The logistics rail volumes crossed the significant milestone of 500,000 TEUs during the year, while GPWIS cargo volumes experienced a remarkable year-on-year growth of 63%, reaching 14.35 MMT. Mundra and Krishnapatnam Ports witnessed the arrival of the largest ships, and seven ports/terminals managed the largest parcel size vessels of their lifetime in FY23.

Transformation of India's Port Sector: APSEZ has set a benchmark for other Indian ports by achieving industry-leading average turnaround times (TAT) for ships, currently standing at approximately 0.7 days. This accomplishment has contributed to the overall improvement in TAT for major ports, reducing it from approximately 5 days in 2011 to approximately 2 days at present.

Record Investments during the Year: APSEZ successfully completed six acquisitions (Haifa Port Company, Gangavaram Port, Karaikal Port, IOTL, Ocean Sparkle, and ICD Tumb) in FY23, amounting to an investment of approximately Rs 18,000 Cr. The total capital expenditure during the year reached around Rs 9,000 Cr. Despite these significant investments, APSEZ managed to maintain a net debt-to-EBITDA ratio