Adani Ports’ Victory: Record-High Sales and Profits in Q1
Newzdaddy Business Updates
Ashwani Gupta, the CEO, on APSEZ’s Prospects for Future Growth
With impressive performance, Adani Ports and Special Economic Zone Ltd (APSEZ) began the 2025 fiscal year. The business had a notable increase in profit after tax (PAT) as well as record-breaking sales and earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first quarter. The specifics of APSEZ’s operational and financial accomplishments will be covered in full in this article, along with an emphasis on the major elements that made them successful.
Exceptional Financial Results
The Q1 FY25 performance for APSEZ are outstanding. At Rs. 7,560 crore, the company’s revenue reached a record high, up 21% over the previous year. EBITDA increased by 29% over the same period previous year to an all-time high of Rs. 4,848 crore. Most remarkably, the PAT increased by an astounding 47% to Rs. 3,107 crore.
Growth in Volume and Cargo Management
At 109 million metric tonnes (MMT), APSEZ handled 8% more freight than it did the previous year. An 11% increase in liquids and gas volumes and an 18% increase in container volumes were the main drivers of this expansion. Gangavaram Port’s activities have already resumed entirely, albeit with a brief setback that caused a 5.7 MMT loss. Had this disruption not occurred, the freight volume would have increased by 13% to 114.7 MMT.
One of APSEZ’s principal assets, Mundra Port, handled an astounding 51 MMT of cargo in Q1 FY25, the most any Indian port has ever handled in a quarter. This accomplishment highlights the port’s strategic significance and effective cargo handling system.
Accomplishments in Rail Cargo and Volume of Containers
Additionally, APSEZ recorded 0.16 million twenty-foot equivalent units (TEUs), a 19% year-over-year increase, marking its highest-ever quarterly rail cargo volume. Reaching 5.56 MMT, the volume processed through the General Purpose Waggon Investment Scheme (GPWIS) increased by 28%. Furthermore, Multi-Modal Logistics Parks (MMLPs) saw a 27% increase in container volume, reaching 103,784 TEUs.
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Improvement in Ratings and Financial Stability
The credit rating of APSEZ has been upgraded to ‘AAA’ by two domestic rating agencies, CARE and ICRA, providing additional evidence of the company’s sound financial standing. Additionally, APSEZ’s credit outlook was raised by S&P Global Ratings from “Stable” to “Positive,” which is indicative of the company’s increasing scale and diversification. In comparison to the prior fiscal year, the net debt to trailing twelve months (TTM) EBITDA ratio decreased to 2.1x from 2.3x.
New Port Agreements and Concessions
APSEZ has proactively expanded its business. Container Terminal 2 (CT2) at the Tanzanian port of Dar es Salaam is operated and managed by the corporation under a 30-year concession arrangement negotiated with the Tanzania Ports Authority. With four berths, CT2 can handle one million TEUs of cargo annually and is expected to handle 0.82 million TEUs by 2023.
A Letter of Intent (LOI) for the development, management, and upkeep of Berth No. 13 at Deendayal Port for a 30-year concession period was granted to APSEZ in India. Additionally, the business obtained a five-year operations and maintenance (O&M) contract for the Netaji Subhas Dock container facility at Kolkata’s Syama Prasad Mookerjee Port. With the capacity to handle 0.63 million TEUs in FY2023–24, this facility is the biggest container terminal on India’s east coast. It is anticipated that APSEZ’s presence at this port will promote collaboration with the planned transshipment hubs in Vizhinjam and Colombo.
The first mothership touched down at India’s first transshipment port, Vizhinjam Port, which was outfitted with the most cutting-edge container handling equipment in South Asia. This development represents an important turning point in APSEZ’s ongoing efforts to improve its infrastructure and capabilities.
Increase in Storage and Agrisilo Capacity
With the construction of a new warehouse in Palwal, APSEZ has also increased the amount of space it can store—to 2.9 million square feet. Agrisilo’s current capacity is 1.2 MMT, but after ongoing projects are finished, it should reach 4 MMT. These additions demonstrate APSEZ’s dedication to strengthening its storage and logistics capacities.
With a tug each in Mexico and Sri Lanka, the company’s marine services division is expanding. This move into foreign waters is indicative of APSEZ’s goal to become a worldwide player providing all-encompassing marine services.
Dedicated to Climate Action and ESG
In terms of environmental, social, and governance (ESG) measures, APSEZ has achieved notable progress. APSEZ received a score of 11.3 from Sustainalytics, which put the business in the “Low” risk category. With a 95 percentile score, APSEZ continued to be the highest ranking company in the port sector’s low carbon transition assessment.
The business received recognition from the Carbon Disclosure Project (CDP) as well for its efforts to combat climate change and establish a strong supply chain involvement program. APSEZ’s leadership in sustainability practices was highlighted by its “A-” rating in supplier involvement and climate change.
Statement from the CEO
The CEO and Whole-Time Director of APSEZ, Mr. Ashwani Gupta, expressed his happiness with the company’s performance in the first quarter of FY25. “We’ve had an outstanding start to FY25 with remarkable growth and financial results. Financially speaking, we reported record profits. Had it not been for the brief disruption at Gangavaram Port, which has since been fully restored, our Q1 cargo volume would have increased by 13% to 114.7 MMT.”
In addition, he emphasized how the company had been successful in obtaining new O&M contracts and port concessions, and that four APSEZ ports had been included in the World Bank’s Container Port Performance Index 2023.
A solid basis for the remainder of the fiscal year is laid by APSEZ’s outstanding performance in the first quarter of FY25. By achieving unprecedented financial outcomes, making strategic advancements, and upholding sustainability, APSEZ is firmly establishing itself as a frontrunner in the port and logistics industry. The business’s continuous initiatives to upgrade its facilities, land new businesses, and strengthen its finances provide a clear route to long-term success and growth.