Adani Ports Q4 Results Review - Focus On De-Leveraging, Asset Utilisation In FY24: ICICI Direct

ICICI Direct Report

Adani Ports and Special Economic Zone Ltd.'s performance was better than estimates on the topline front. Revenues grew 40% YoY to Rs 5797 crore, supported by Haifa consolidation.

Absolute Ebitda grew 27% to Rs 3271 crore (margins contracted 590 basis points to 56.4% due to higher employee and other expenses from Haifa port). Profit after tax grew mere 5% to Rs 1159 crore due to exceptional loss of Rs 1273 crore.

Key triggers for future price performance:

• As Adani Ports embarks on becoming India's largest integrated transport utility company by 2030, it is strengthening its capabilities in all logistics segments (ports, container terminal operator, warehousing, last mile delivery, inland container depots etc). Hence, it will offer end to end service to its customers thereby capturing a higher wallet share and also making the cargo sticky in nature.

• Dedicated freight corridor connectivity to Mundra (normalisation in the medium term) to provide faster port evacuation, quicker transit time.

• Inorganic opportunities like acquisition of Container Corporation of India Ltd. [~67% market share in CTO business].

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