Adani Ports Surpass Cargo Volume Guidance, Aiming for 500 MMT by FY25

Adani Ports and Special Economic Zone (APSEZ), India’s largest port developer and operator, are set to surpass its guidance of 370-390 million metric tonnes (MMT) for FY24 and are on track to achieve a remarkable 500 MMT by FY25.

In November alone, APSEZ recorded an impressive 42% rise in cargo volumes, reaching 36 MMT, with growth evident across all three cargo categories. Notably, dry bulk cargo experienced a significant 60% year-on-year (y-o-y) increase, containers rose by 26%, and liquids and gas saw a robust growth of over 23%.

For the period between April and November this year, APSEZ handled around 275 MMT of cargo, marking a substantial 21% y-o-y increase. A source close to the development revealed, "This is nearly 70% of the full-year guidance of 370-390 MMT, and the company expects to meet, if not exceed, the target set for the entire year."

Motilal Oswal Research, in a report released recently, affirmed that APSEZ is on course to surpass the FY24 volume guidance. The report stated, “With higher-than-expected cargo growth in the first eight months of FY24, we have increased our volume estimates by 2% to 410 MMT for FY24. We now expect APSEZ to register 16% volume growth over FY23-25,” adding that revenue would grow by 23%, EBITDA by 21%, and net profit by 17%.

APSEZ's chief executive officer, Karan Adani, assured analysts in a Q2 earnings call that the company was on track to achieve the guidance for FY25 while refraining from commenting on meeting FY24 guidance. The growth trajectory is expected from Adani International Container Terminal Private Ltd (AICTPL), a terminal at APSEZ’s Mundra port, along with Dhamra and Ennore ports.

In November, AICTPL handled an impressive 300,431 twenty-foot equivalent units (TEUs) across 97 vessels, surpassing its highest-ever monthly volume recorded in March 2021. Dhamra and Ennore ports also achieved their highest-ever monthly volumes of 3.96 MMT and 65,658 TEUs, respectively, in November.

APSEZ's logistics volumes witnessed record growth with year-to-date (YTD) rail volumes of about 379,000 TEUs (a 23% y-o-y rise) and General Purpose Wagon Investment Scheme (GPWIS) volumes of 12.3 MMT (44% y-o-y increase). November 2023 saw the highest-ever monthly GPWIS volumes at 1.72 MMT.

According to a report by Kotak Institutional Equities, APSEZ's growth reflects a "sharp" focus on operational efficiencies, enabling the company to gain business by offering superior service levels for the same price. The report also highlighted the company's sensitivity to select cargo classes, such as thermal coal and iron ore, contributing to its success as it starts to see normalized volume levels in select ports like Mundra, Gangavaram, and Krishnapatnam.