Adani Ports reports 7% growth in cargo volumes
Adani Ports and Special Economic Zone (APSEZ) managed to handle 183 million metric tonnes (mmt) of cargo during the period of April to August 2024, according to India Shipping News.
The company saw a 7% year-on-year growth in cargo volumes in the first quarter of the fiscal year 2025 (Q1 FY25), but operations were disrupted by a workers' strike at Gangavaram Port from April to May 2024. The strike was resolved by June 2024, allowing the company to resume normal operations. Additionally, severe weather conditions in Kutch affected cargo handling at the Mundra and Tuna ports in August 2024. Despite these operational setbacks, APSEZ's management remains confident in achieving its projected cargo volume for the fiscal year, maintaining a target of 460-480 mmt by the end of FY25.
The company continues to expand its capacity and strengthen its presence in key locations. Recently, APSEZ signed a concession agreement with the Deendayal Port Authority (DPA) to develop a new berth at Kandla, Gujarat, which will have a capacity of 5.7 mmt. The 300-metre-long berth is expected to become operational by FY27. In addition to its expansion at Kandla, APSEZ has also agreed to acquire an 80% stake in Singapore- based Astro, a company that operates 26 vessels across the Middle East, India, Far East Asia, and Africa. This acquisition, valued at USD 185 million, will boost APSEZ's fleet size to 168 vessels and enhance its market presence in strategic regions.
While the company faced temporary setbacks due to the worker strike and weather conditions in the first half of FY25, these issues have now been resolved, and the company remains on track to meet its yearly targets. APSEZ aims to become India's largest integrated transport utility and the world's largest private port company by 2030. Looking ahead, the company expects to record an 11% growth in cargo volumes over FY 24-26, with revenue, EBITDA, and profit expected to grow at a compounded annual growth rate (CAGR) of 14%, 15%, and 22%, respectively, during the same period. APSEZ's diversified portfolio of ports along both India's eastern and western coastlines, combined with a varied cargo mix, positions it well to outpace India's overall cargo volume growth. APSEZ continues to focus on expanding its port and logistics businesses and is expected to significantly contribute to India's cargo volume growth in the coming years.
Adani Ports and Special Economic Zone (APSEZ) has demonstrated resilience and strategic growth despite operational disruptions in the first half of FY25. With ambitious expansion plans, including new berths and significant acquisitions, the company is well- positioned to achieve its cargo volume targets and maintain robust financial growth. APSEZ's diversified portfolio and strategic initiatives underpin its goal of becoming India's largest integrated transport utility and the world's largest private port company by 2030.
