- 30 May 2023
- ICICIdirect Research
Adani Ports and SEZ Q4 Results 2023: Guidance on track to further de-leverage company in FY24
Adani Ports & Special Economic Zone Ltd | CMP: 1475 | Market Cap: 318,588.10
Guidance on track to further de-leverage company in FY24 and grow 13%, 18%, 35% in volume, revenues, EBITDA, respectively
Adani Ports’ Q4FY23 adjusted numbers were largely higher than I-direct estimates on the profitability front. However, due to an exceptional expense of Rs1273 crore (led by a non-cash impairment generated by sale of Myanmar port asset) , PAT was lower than estimates. FY24 guidance includes cargo volumes in the tune of 370-390 MMT and Revenue/EBITDA in the range of Rs24000-25000 cr/Rs14500-15000 cr. Net Debt to EBITDA is further expected to lower to 2.5x from current 3.1 and Capex at Rs4000-4500 cr
Q4FY23 Earnings Summary
View: In spite of current weakness in EXIM sector, Adani Ports has maintained its FY24 guidance, which includes 10-12 MMT volumes from newly acquired Karaikal port. Further, it has prioritized loan payoff vs capex in FY24. Logistics vertical continued to see strong growth (up 47% YoY). Regarding, Concor acquisition the management will cautiously take a call when the divestment resumes.
Impact: Positive