Adani Ports rises 3%, better business outlook hits new highs

In Q1FY23, the company has recorded a record EBITDA of Rs 3,005 crore, which is the highest for the ports and

The growth of 11 per cent is believed to be behind the revenue growth for the logistics business.

Shares of Adani Ports Special Economic Zone (APSEZ) touched a new high of Rs 934 with a gain of 3 per cent on the BSE in intra-day trade on Monday.

The stock has gained 10 per cent in the last few one week and 19 per cent in the last month on account of

better trading outlook and strong earnings in the June quarter of the current fiscal (Q1FY23).

The S&P BSE Sensex was up 1 per cent during the month.

Q1FY23 was considered to be the strongest quarter in APSEZ's history, with record cargo volumes and highest ever quarterly EBITDA.

The company recorded a record EBITDA of Rs 3,005 crore, which is up 11 per cent year-on-year (YoY) on account of revenue growth for the ports and logistics business.

The management had said that the company continued this strong performance in July and recorded a cargo through-put of 100 MMT in the first 99 days of FY23,

a feat never achieved earlier. However, the company's consolidated revenue stood at around Rs 4,638 crore,

considering a drop of Rs 725 crore in revenue from the SEZ business segment.

“With the commissioning of two new terminals in the coming months of APSEZ, this growth story will gain momentum

The container terminal at Gangavaram port will be operational by September, while the 5 MMT LNG terminal at Dhamra will be ready by the end of December

This LNG terminal has take-or-pay contracts with some O&G majors," the company said

“APSEZ is on track to meet its FY23 cargo guidance of 350-360mt, backed by better co

APSEZ has maintained its capex guidance of Rs 23,000 crore till FY25. While it capex is strong EBITDA (Pre -FX MTM).

Analysts at Centrum Broking in their results update report say Rs 13,300 crore / Rs 15,300 crore in FY23E/ FY24E, increase in intensity is likely to restrict the expansion of ROCE.

Thermal Coal Volumes The recovery in imports of U.K. is one of the key catalysts for FY23 volume guidance.

In addition to APSEZ's continued cargo diversification efforts, incremental volumes in containers

LNG at Dhamra and more dry and liquid cargo at major ports should be aided, the

brokerage firm saidThough the new tie-up will help in container cargo recovery in Krishnapatnam, the stock is above its target price of Rs 920 per share.