APSEZ 9M EBITDA grows by 19%

AHMEDABAD: Adani Ports and Special Economic Zone Ltd (“APSEZ”), today announced its results for the third quarter and nine monthsended31December2022.

Withthehighesteverrevenueand EBITDA over a nine-month period, ASPEZ is well placed to achieve the upper end of its full year revenue and EBITDA guidance provided for FY23. The company also concluded the transactions of Haifa Port Company, IOTL,ICDTumb,OceanSparkle,and GangavaramPort,andisprogressing well on transitioning its business model to a transport utility, said Mr. Karan Adani, CEO and WholeTimeDirectorofAdaniPorts andSpecialEconomicZone.

Continuing with our growth journey, APSEZ is targeting FY24 EBITDA of Rs 14,500-15,000 Cr. Besides an estimated capital expenditure of INR 4,000-4,500 Cr, we are considering total loan repaymentandprepaymentofaround Rs 5,000 Cr, which will significantly improve our Net Debt to EBITDA ratio and bring it closer to 2.5x by March24”addedMr.KaranAdani.

Robust Operational

Performance: During 9M FY23, APSEZ handled ~24% of the country’s total cargo and retained its leadership position of being the India’s largest port operator. Port EBITDA grew 20% Y-o-Y to Rs 9562 Cr, on the back of strong improvement in realizations and cargo volume growth. With port EBITDA margin at ~70%, APSEZ continues to be one of the most profitable port companies globally. Given our increased focus of providing supply chain solutions to our customers at their door step our logistics business segment is experiencing a phenomenal growth. EBITDA of logistics business segment jumped 66% Y-o-Y to Rs 354 Cr, supported by margin expansion of 400bps with improved utilization of assets and increased shareoftheGPWISrevenuestream.

Strong Capital Structure: APSEZ’snetdebttoEBITDAratiois well within our guided range of 3-3.5x, while our gearing ratio is below one. The performance across various debt covenants has been better than the desired levels. We have an impeccable track record of fulfilling our debt obligations, and our internal accruals enable us to meet the scheduled debt repayment for any of the financial yearswithoutanymajorchallenges.

Well positioned for growth with multiplecatalysts:Weareconfidentof continuingourstrongperformancein the coming quarters given the presence of various catalysts, particularly the operational ramp up offacilitiescommissioned/acquiredin thelastfewmonths:

In the port business segment, the new additions include- (i) the Haifa Port Company in Israel (~20 MMT), (ii) new container terminal at Gangavaram (6 lakh TEU), (iii) liquid storage tanks at Katupalli, (iv) 5 MMT LNGterminalatDhamrainApril2023, and (v) Karaikal Port (17.5 MMT), for which APSEZ has received the LoI,subjecttoNCLTapproval.

New assets in the logistics business segment include(i) recently acquired ICD Tumb (one of India’s largest with a capacity of 0.5 MTEUs), (ii) Taloja MMLP, (iii) three agri-silo terminals, (iv) warehousing capacity of 0.6 Mn sq. ft, (v) 12 new trains and (vi) Kila Raipur MMLP, which restartedoperations12monthsback.