Top Indian Companies: Adani Ports and Special Economic Zone Limited

Adani Ports and Special Economic Zone Limited (Adani Ports & SEZ; also APSEZ) formerly known as Mundra Port and Special Economic Zone Limited, is India's largest private multi-port operator.

APSEZ represents a large network of ports with India's largest SEZ at Mundra. APSEZ Port Business is integral to its Logistics Business and is India's Largest private port operator with presence across 12 locations. The Adani Group, an integrated infrastructure corporation. Adani Port is a Nifty 50 company with a weightage of 0.71%.

Shareholding Pattern

The Shareholding Pattern page of Adani Ports & Special Economic Zone Ltd. presents the Promoter's holding, FII's holding, DII's Holding, and Share holding by general public etc.

Holder's Name No of Shares % Share Holding

No of Shares 2112373230 100%

Promoters 1009883955 47.81%

Foreign Institutions 313229564 14.83%

Banks Mutual Funds 107620594 5.09%

Central Govt 550700 0.03%

Others 30528019 1.45%

General Public 70731072 3.35%

Financial Institutions 215764177 10.21%

Foreign Promoter 364065149 17.23%

FY2023 Q4 and Full Year Results

APSEZ on Wednesday reported 9 per cent growth in cargo handling at seaports it operates for fiscal year ended March 31.

At 339 million tonne, this is the largest port cargo ever, APSEZ said in a statement.

The firm handled about 32 million tonne of total cargo in March, up 9.5 per cent year-on-year.

This is the first time since July 2022 that the volumes crossed the 30-million tonne mark.

“With 339 million tonne in FY23 (April 2022 to March 2023), APSEZ recorded its largest port cargo volumes ever, which is a good 9 per cent year-on-year growth,” it said.

“Adani Ports has been continuously increasing its market share for the past years, outperforming all of India’s cargo volume growth.” The nation’s largest port operator, which operates six ports on the west coast and five on the east, continues to add ports to its portfolio.

Earlier this week, it completed the acquisition of Karaikal Port.

While 11 ports it operates handle 25 per cent of total port volumes, the firm is also developing two transshipment ports at Vizhinjam, Kerala and Colombo, Sri Lanka.

“The improvement in cargo volumes is testimony to the faith that our customers have in us,” said Karan Adani, CEO, APSEZ. “APSEZ’s flagship port, Mundra (in Gujarat), is outpacing all its closest rivals and continues to be the largest port in the nation in terms of volumes handled. Mundra’s infrastructure meets the world standards and provides service levels on par with those of its global competitors, making it India’s gateway for container goods.” The overall container volumes handled by APSEZ in India jumped to 8.6 million TEUs (twenty-foot equivalent units), a 5 per cent year-on-year growth, including 6.6 million TEUs at Mundra alone.

Mundra continues to be India’s largest seaport with 155 million tonne of total cargo handled during the year.

The logistics business segment also had a record year. The container rakes handled during the year achieved a new milestone crossing 500,000 TEUs (24 per cent rise), while the bulk cargo transported exceeded 14 million tonne, implying a 62 per cent y-o-y jump.

“This financial year witnessed APSEZ setting some new milestones on the count of ships docked (6,573), rakes serviced (40,482), and the trucks, trailers and tankers handled (48,89,941). Adani Ports serviced 3,068 unique customers across its different business units,” the statement said.

Increase in cargo volume at ports reflects the expanding economy. Almost 95 per cent of the trade volumes in India are carried through maritime transport.

“APSEZ consistently works on cargo diversification at all its ports. This year, Krishnapatnam Port successfully added soybeans, edible oil and sugar to its cargo portfolio while Dighi Port handled sugar for the first time and Dhamra its first rice vessel for export to Bangladesh,” the statement said.

Port is on track and it will be retrospectively consolidated from 1st Apr 2021 in Q4. Q3 port EBITDA of Rs 22.46 bn (after incl. Rs 1.12 bn contribution for SRCPL) was in line with the Brokerage, Axis Capital, estimate.

Amid prevailing uncertainty around coal volumes, ADSEZ cut its FY22 revenue/ EBITDA guidance by 5.5%/7.8% to Rs 170 bn/ Rs 116 bn respectively. Axis Capital were anticipating a guidance cut going into Q3, but Brokerage, Axis Capital have cut their FY22/FY23E EBITDA by an additional 3.7%/ 3.0% respectively. In FY22, Brokerage do factor in 311MMT port cargo volumes (9M incl. Gangavaram at 234MMT) vs. 325MMT earlier (and original guidance of 350-360MMT).

Revise SOP TP to Rs 814 (vs. Rs 825 earlier), implying ~9% upside. Maintain ADD. Port business valued at 13x FY24E EV/EBITDA accounts for ~90% of our TP. The stock trades around 1-year forward mean P/E 20x and EV/EBITDA of ~14x seen over the past decade.

ESG

APSEZ is working towards reducing its dependence on fresh water consumption and accordingly, have set-up wastewater treatment plant across ports and logistics sites wherever mandated or required.

In line with the goal to build resilience towards climate change and commitment to reduce our impact on the environment, the company undertake several measures including process improvements and technology integration.