Adani Ports Q3 Profit Follows with Plans to Construct Terminals & Projects for 2017

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The Logistics Headlines, New Delhi, 16th Feb 2017: Recently, Adani Ports Q3 Profit saw an increase by 26% to Rs. 850 crore with its logistics arm- Adani Ports and Special Economic Zone Ltd (APSEZ), which has drawn a net profit (Rs. 675 crore) in the quarter of 2015-16. APSEZ also reported a jump of 25.82 percent in its consolidated net profit till Rs. 849.75 crore, reportedly in December 2016. Its operating income spurted by 32% to Rs. 2,236 crore during this period, an upward trend from last quarter’s draw of Rs. 1,696 crore.

Q3 FY17 Profits and Port Improvements

The Adani Group is a leading business house with revenue of more than $12 billion. The company handled 41 million tonnes of cargo in the quarter, which went up by 8% against the figures recorded for the corresponding quarter earlier. The EBITDA consolidated leaped by 30% to Rs. 1,371 crore in the Q3 FY17 from Rs. 1,056 crore in Q3 FY16. The EBIDTA margins were secured at 62%.

The Chief Executive Officer of APSEZ, Karan Adani says that their strategy is to diversify the cargo mix so that focus can be driven on high value cargo to bring positive results. Performance in cargo volumes has been growing for newer ports such as Dhamra, Kattupalli, and Hazira.

Karan Adani further added that operational efficiencies in mix of bulk cargo and not only coal, have added up to all-round economical growth. Adani operates and owns eight terminals and ports in India. These facilities are at Dahej, Kandla, Mundra, and Hazira in Gujrat, Mormugao in Goa, Dhamra in Orissa, Katupalli in Chennai, and Visakhapatnam in Andhra Pradesh.

Initiatives in Sagarmala and APSEZ Services

There have been logistic service proposals such as Sagarmala, a government effort to revolutionize India’s inland waterways and coastal shipping that contains capacity to manage 30 MT cargos. The project is a developmental plan for laying 7,500km coastline.  Adani is now constructing a terminal at Vizhinjam in Kerala and Ennore in Tamil Nadu, which can generate one-million plus TEUs of Indian cargo transhipped to foreign ports such as that in Colombo, Sri Lanka.

The Chairman, Gautam Adani had also promised to increase investments in Odisha to Rs. 3,000 crore, which will help to create more jobs and add to infrastructure.

APSEZ has been strong in logistics hubs including two Inland Container Depots (ICDs) and two Export Import (EXIM) yards, and a third ICD in Punjab.  Mundra Port is the largest port of Adani in India, and it benefits from the first-class infrastructure, deep draft, and SEZ (Special Economic Zone) status. It plans to double the capacity at Dhamra port to 50 million tonnes by the March 2017.

Leading Projects by Adani Port in 2017

Also, Adani Port had planned to set up a captive port in Cuddalore, Tamil Nadu with IL&FS, with a supplement of Rs. 300 crore. In the year 2017, with SEZ its aim is to complete expansion of the Adani International Container Terminal (AICTPL) in Mundra Port for creation of transhipment hub for South Asia, India and the Middle East.

Meanwhile, in January 2017, Adani Port raised $500 million through selling dollar bonds to overseas investors. The company had received bids two-times than the actual size from about 129 investors across Asia, U.S, Africa, and Europe. By this move, the organization wishes to refinance its debts. On the other hand, Adani Enterprises is gearing to begin constructing a $7 billion coal mine in 2017 for Australia.

 

 

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