Adani Ports May-24

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Questions and Answers

What was the growth percentage in cargo volume reported for April compared to the same month last year?

12% (correct)

15%

10%

What is the range of cargo volumes expected for the upcoming year?

450 million to 470 million metric tons

460 million to 480 million metric tons (correct)

400 million to 420 million metric tons

500 million to 520 million metric tons

For FY '25, how much capex was guided for investment?

INR 9,500 crores

INR 7,000 crores

INR 10,000 crores

INR 11,500 crores (correct)

Which area is being allocated around INR 4,000 crores for investment in FY '25?

Marine services Signup and view all the answers

How much capex was invested last year as mentioned?

INR 7,400 crores Signup and view all the answers

What percentage of the volumes was mentioned to be through the Red Sea route?

10% Signup and view all the answers

What strategy is being employed to minimize risk as stated in the discussion?

Covering risks with additional opportunities Signup and view all the answers

How many tugs does the company possess?

111 tugs Signup and view all the answers

Who is the new CEO leading the engagement for Adani Ports?

Mr. Ashwani Gupta Signup and view all the answers

What was the percentage growth of operating revenue for Adani Ports during the year?

28% Signup and view all the answers

Which individual joined the call for the first time as CEO of Ports?

Mr. Pranav Choudhary Signup and view all the answers

What was the EBITDA margin expansion for domestic ports during the year?

150 basis points Signup and view all the answers

What was the profit after tax for Adani Ports for the year?

INR 8,104 crores Signup and view all the answers

Prior to becoming CEO of Ports, what role did Pranav Choudhary have?

Head of Container Marketing Signup and view all the answers

What was the forex impact excluded EBITDA for the year?

INR 15,864 crores Signup and view all the answers

How much was the write-off in the second quarter due to the tax regime change?

INR 455 crores Signup and view all the answers

What is the expected contribution of both Vizhinjam and Sri Lanka to the volumes this year?

Very small contribution Signup and view all the answers

What is the anticipated growth rate for India cargo according to Ashwani Gupta?

6% to 6.5% Signup and view all the answers

What percentage growth does the speaker imply they might achieve based on operational excellence?

12% to 14% Signup and view all the answers

What is described as a 'game changer' in the context of growth?

Vizhinjam transhipment terminal Signup and view all the answers

In the long term, what do the speakers primarily focus on regarding their growth strategy?

Enhancing logistics business Signup and view all the answers

How does the speaker feel about assessing new opportunities in their growth strategy?

They will always assess and consider new opportunities Signup and view all the answers

What is implied about the speaker's confidence in their operational capabilities?

They have full confidence in their operational excellence Signup and view all the answers

What challenge is noted regarding the geographic expansion of their portfolio?

Limited geographical opportunities in India Signup and view all the answers

What is the primary purpose of the INR3,100 crores cash expenditure in 2024?

Land acquisitions and advance for subsidiaries Signup and view all the answers

What is the expected outcome for Q1 regarding the discussed transaction?

To finalize and close the transaction Signup and view all the answers

What is the reason for the structural decline in SEZ income according to the discussion?

A decrease in the number of units leasing SEZ land Signup and view all the answers

What type of income from SEZ is considered on an annuity basis?

Rent paid by units for land Signup and view all the answers

What did Bharani Vijayakumar inquire about in the discussion?

Cash use for subsidiary acquisitions Signup and view all the answers

What is the anticipated cash availability mentioned for maturing July bond payments?

Sufficient cash to cover the payments Signup and view all the answers

Who is primarily responsible for explaining the SEZ income situation?

D.Muthukumaran Signup and view all the answers

What is the estimated cost for generating 1000 megawatts of power mentioned?

INR40 billion Signup and view all the answers

Which business area does the discussed land acquisition primarily relate to?

Logistics business Signup and view all the answers

What is the planned usage of the power generated by Adani Port?

For captive use with possible sales of excess Signup and view all the answers

When is the company planning to pay off the July '24 bonds?

Upon the due date Signup and view all the answers

What is the company's current strategy regarding the bond market?

No intention to enter the bond market in the near term Signup and view all the answers

What did D. Muthukumaran reveal about cash generation moving forward?

Cash generation will continue as they go forward Signup and view all the answers

In their latest capacity, what is the company's primary focus for growth?

Expanding existing port facilities Signup and view all the answers

What is the planned timeline for achieving the total generation of 1000 megawatts?

In parts over several years Signup and view all the answers

What is the company’s target cargo volume for FY25?

460-480 million metric tons Signup and view all the answers

What did Atul Tiwari inquire about concerning power generation?

Whether it is for captive purpose or for sale Signup and view all the answers

What is the expected EBITDA range for the company in FY25?

INR17,000 crores - INR18,000 crores Signup and view all the answers

What was the net debt to EBITDA ratio of the company as of March 31, 2024?

2.3x Signup and view all the answers

How many trucks did the company operate during the year?

900 trucks Signup and view all the answers

Which credit rating agency assigned a AAA rating to the company?

CARE ratings Signup and view all the answers

What is the recommended dividend per share for FY24?

INR6 per share Signup and view all the answers

What is the expected capex range for FY25?

INR10,500 crores - INR11,500 crores Signup and view all the answers

In which countries has the company secured contract wins for its marine service businesses?

Sri Lanka, Mexico, and Oman Signup and view all the answers

Study Notes

Q4 FY'24 Earnings Conference Call - Adani Ports and SEZ Limited

Management Team: Ashwani Gupta (Whole-Time Director and CEO), Pranav Choudhary (CEO, Ports Business), Subrata Tripathy (Former CEO, Ports Business), Sushant Kumar Mishra (CEO, Adani Logistics), D. Muthukumaran (CFO), and Charanjit Singh (Head of Investor Relations and ESG)
Moderator: Priyankar Biswas (BNP Paribas Securities)
Date: May 2, 2024
Financial Highlights (FY'24):
- Operating revenue: INR26,711 crores (28% YoY growth)
- EBITDA (excluding forex impact): INR15,864 crores (24% YoY growth)
- Domestic ports EBITDA margin: 71% (increased by 150 bps YoY)
- Profit after tax: INR8,104 crores (50% YoY growth)
- Cargo volumes: 420 million metric tons (24% YoY increase)
Operational Highlights (FY'24):
- Mundra Port: 180 million metric tons of cargo handled (16% YoY growth), 7.4 million TEUs (15% YoY growth)
- CT3 (Mundra): 3.1 million TEUs (highest ever annual container cargo in India)
- Acquisition: Gopalpur and Karaikal Ports (increasing India portfolio to 15 ports)
- Joint venture: MSC for Ennore container terminal
- Logistics: Adani Logistics Limited's highest ever volumes
- Logistic parks: 12 MMLPs (up from 9)
FY'25 Outlook:
- Cargo volumes expected to increase to 460-480 million metric tons
- Revenue: INR29,000-INR31,000 crores
- EBITDA: INR17,000-INR18,000 crores
- Net Debt to EBITDA: 2.2x-2.5x
- Capex: INR10,500 to INR11,500 crores
Key Discussion Points:
- Tariff hikes, volume guidance, Red Sea issues
- Impact of new tax regime, operational and business milestones, new management
- Renewable energy investment: INR1,500 crores (solar and wind projects)
- SEZ income decline, and strategic direction for future growth
- Focus on logistics and decarbonization, future international expansion opportunities
Note: The conference call discussed Adani's financial and operational progress, focusing on Q4 FY'24 performance and future outlook. Significant emphasis was placed on operational efficiency expansions, growing cargo volumes and cash flow.

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Description

Explore the key financial and operational highlights from the Q4 FY'24 earnings conference call of Adani Ports and SEZ Limited. Discover insights from the management team and understand the significant growth in revenue, profit, and cargo volumes compared to the previous year.