APSEZ announces FY19 Result

APSEZ achieves Record Cargo Throughput of 208 MMT.

Ahmedabad, May 27th, 2019: Adani Ports and Special Economic Zone Limited (“APSEZ”), India’s largest port developer, operator and the logistics arm of Adani Group, today announced its financial results for the financial year ended 31st March, 2019.

Financial Highlights:

Parameters            (Rs in cr)	FY19	FY18	Q4 FY19	Q4 FY18
Consolidated Revenue	10925	11323	3082	3183
Consolidated EBITDA *	7067	7145	1932	1931
Consolidated EBITDA margin	65%	63%	63%	61%
Forex mark to market (Loss)/gain	(476)	(83)	109	(220)
PBT(as Reported)	5126	5234	1583	1325
PAT(as Reported)	4006	3683	1300	938
EPS(as Reported)	19.27	17.74	6.21	4.48

Consolidated financial highlights for FY19: - (Y o Y)

Revenue : -

• Port Revenue grew by 20% to Rs.8,897 cr in FY19 from Rs.7,393 cr in FY18 on the back of strong cargo growth.
• SEZ port led development income earned in FY19 was Rs.769 cr compared to Rs.2,481 cr earned in FY18. This led to reporting of lower consolidated revenue of Rs.10,925 cr in FY 19 as compared to Rs.11,323 cr in FY18.

Consolidated EBITDA (excluding forex gain/loss):-

• In FY19, Port EBITDA increased by Rs.909 cr to Rs.6,053 cr translating into a year on year growth of 18%.
• Consolidated EBITDA in FY19 was flat at Rs.7,067 cr vs. Rs7,145 cr on account of lower SEZ port led development EBITDA. (Rs.665 cr in FY19 compared to Rs.1679 cr in FY18)

Consolidated EBITDA margins : -

• Margins improved by 200 BPS to 65 % in FY19 due to change in cargo mix, higher capacity utilization and operational efficiencies.

Consolidated PAT: -

• Profit after Tax increased by Rs.323 cr to Rs.4,006 cr an increase of 9% on account of higher cargo volume growth.

Consolidated financial highlights for Q4FY19: - ( Y o Y)

Revenue : -

• Port Revenue grew by 22% to Rs.2,383 cr in Q4FY19 from Rs.1,947 cr in Q4FY18 on the back of strong cargo volume growth.
• SEZ port led development income earned in Q4FY19 was Rs.361 cr compared to Rs.838 cr earned in Q4 FY18. This led to reporting of lower consolidated revenue of Rs.3,082 cr in Q4 FY 19 compared to Rs.3,183 cr in Q4 FY18.

Consolidated EBITDA (excluding forex gain/loss):- ( Y o Y)

• In Q4 FY19, Port EBITDA increased by Rs.121 cr to Rs.1,492 cr translating into a year on year growth of 9%.
• Consolidated EBITDA in Q4FY19 was flat at Rs.1,932 cr. Growth is impacted on account of lower SEZ port led development EBITDA. (Rs.335 cr in Q4FY19 compared to Rs.471 cr in Q4FY18)

Consolidated EBITDA margins: -

• EBITDA margins improved by 200 BPS to 63% on the back of strong cargo volume.
• Port EBITDA margins are not comparable as a special incentive of Rs.65 cr was paid to employees on achieving key mile stone of handling 200 MMT plus cargo volume in FY19.

PBT and PAT: -

• PBT increased by 19% to Rs.1,583 cr in Q4 FY19.
• PAT increased by 39% to Rs.1,300 cr in Q4 FY19.

PBT and PAT increased on account of higher cargo volume and forex gain of Rs.109 cr.

Operational Highlights - FY19 (Y o Y)

• Cargo volume grew by 15 %.
• Ports across western & southern regions reported strong growth. While, Mundra – the flag ship port of APSEZ grew by 13%, Hazira and Dahej grew by 16% and 30 % respectively. The Southern port of Kattupalli registered a growth of 18%.
• Ennore port in Chennai commenced commercial operations in October, 2018 and handled 57,000 boxes in FY19.
• Cargo volume across the four terminals located in major ports namely Tuna, Goa, Vizag and Ennore grew exponentially. Terminals at these ports together handled 12 MMT, a growth of over 127% over FY18.
• All segments of cargo registered significant growth. While Coal grew by 17%, container grew by 13%. Crude grew by 31% and bulk cargo other than coal registered a growth of 9%.
• During the year, four new services were added at our various ports.

Operational Highlights – Q4FY19 (Y o Y)

• Cargo volume grew by 19 %.
• Ports across all regions reported strong growth. Mundra – the flag ship port of APSEZ grew by 21% and handled a record volume of 36 MMT in a quarter. Kattupalli port in Chennai registered a growth of 20%. Dahej grew by 32% and Hazira by 5%.
• All types of cargo registered significant growth. While Coal grew by 30%, container grew by 11%, crude grew by 3% and bulk cargo other than coal grew by 36%.

Corporate Governance:-

• APSEZ inducted one more independent director Ms. Nirupama Rao, (I.F.S.) on the Board, she was a career diplomat from the Indian Foreign Service from 1973 to 2011 and has served the Government of India in several important positions including that of the Foreign Secretary of India.
• As part of improving our corporate governance and based on feedback from key investors, APSEZ has come out with a Policy of “Related Party Transactions for Acquiring and Sale of Assets”, which is available on its website.

Mr. Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “FY19 had been a landmark year in the history of APSEZ. We have not only exceeded our guidance of handling of 200 MMT in FY19 but also demonstrated our capability of being resilient and grow across all segments and ports. Our strategy to tie up cargo for our terminals at major ports ensured optimum utilization of these ports. Along with strong growth we have also expanded our EBITDA margins.

Recently we have signed a 50 year BOT agreement for operating a container terminal at Yangon. The proposed container terminal at Yangon, Myanmar is part of APSEZ strategy to expand its container terminal network in South-East Asia. The proposed container terminal will be integrated with our Ports/Terminals along the east and south coast of India, unlocking synergies by offering multiple entry/exit points for the shipping lines which wish to call on this region.

We will continue to look at opportunities of inorganic growth in Logistics and ports business in India to increase our hinterland and connectivity. We will gain greater influence, beyond ports and concentrate on supply chain management. Our logistics parks will concentrate on warehousing and improving our capability to handle variety of cargo moving in and out of our logistics parks, on our rakes, to our and other ports in India.

We believe sustainable development as a core value for our future business proofing. We will continue to protect our environment, use safe operational practices and adopt best corporate governance policies”.

Mr. Deepak Maheshwari, CFO and Head of Strategy said, “FY19 has been a remarkable year for us. We have recorded sequential growth in cargo, revenue, port revenue and EBITDA in all the four quarters of FY19 and have achieved PAT of over Rs.4,000 cr. for the first time. The Balance Sheet continues to be strong, with net debt to EBIDTA less than 3x. We expect this trend to continue in FY20 giving us the ability to make strategic investments in port and logistics business.

About Adani Ports and Special Economic Zone

Adani Ports and Special Economic Zone (APSEZ), a part of globally-diversified Adani Group, is the largest port developer and operator in India. In less than two decades, the company has built a formidable presence in port infrastructure and logistics services. APSEZ’s 10 strategically located ports and terminals — Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai — represent 24% of the country's total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland. The company is also developing a transhipment port at Vizhinjam, Kerala.