Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest port developer and the logistics arm of Adani Group, last week announced another stellar operational and financial performance for the year and fourth quarter ended March 31, 2018.
- Consolidated revenue from operations on year-on-year (YoY) basis in FY18 up by 34 per cent at Rs 11, 323 crore.
- Consolidated PAT on YoY basis was Rs 3,683 crore.
- EPS for FY18 was Rs 17.74 per share.
- Consolidated cargo volumes on YoY basis increased by 7 per cent from 169 MMT (FY17) to 180 MMT (FY18).
- Container volumes crossed 5 million TEUs, an increase of 20 per cent on YoY basis, to 5.11 million TEUs.
The profit after tax would have been higher but for higher tax incidence of Rs 1,544 crore in FY18 from Rs 287 crore in FY17. This was because Mundra Port came out of tax holiday period. However, from the cash flow angle, there was no incremental impact as the company has MAT credit entitlement. MAT credit as on March 31, 2017 was Rs 2,685 crore. As on March 31, 2018, the balance MAT credit was Rs 2,025 crore.
Dividend pay-out for FY18 was increased to 11 per cent from 7 per cent in FY17.
The company firmly believes in rewarding shareholders along with its growth. The existing dividend policy has been modified and the dividend pay-out ratio is now linked with profit after tax. From FY19 onwards, the company will target to pay up to 15 per cent of its net profit to shareholders.
- Consolidated revenue from operations for Q4 FY18 up by 43 per cent at Rs 3,183 crore.
- Consolidated PAT for Q4 FY18 was Rs 938 crore.
- EPS for Q4 FY18 was Rs 4.48 per share.
- Consolidated cargo for Q4 FY18 increased by 6 per cent to 45.44 MMT as against 42.67 MMT in Q4 FY17.
The profit after tax would have been higher but for higher tax incidence of Rs 396 crore in Q4 FY18 from Rs 12 crore in Q4 FY17. This was again because Mundra Port has come out of tax holiday period. However, from the cash flow angle, there is no incremental impact as the company has MAT credit entitlement.
FY 18 highlights
- Consolidated revenue from operations registered a growth of 34 per cent from Rs 8,439 crore in FY17 to Rs 11,323 crore in FY18.
- Consolidated EBITDA after excluding forex gain or loss increased by 32 per cent from Rs 5,414 crore in FY17 to Rs 7,145 crore in FY18.
- Profit after tax was Rs 3,683 crore.
- EPS for FY18 was Rs 17.74 per share.
- In FY18, APSEZ handled cargo of 180 MMT, a growth of 7 per cent YoY, surpassing all-India cargo growth of 4 per cent.
- Container volumes crossed 5 million TEUs, an increase of 20 per cent on YoY basis, surpassing all-India container growth of 13 per cent.
Q4 FY 18 highlights
Consolidated revenue from operations registered a growth of 43 per cent from Rs 2,231 crore in Q4 FY17 to Rs 3,183 crore in Q4 FY18.
Consolidated EBITDA after excluding forex gain or loss increased by 45 per cent from Rs 1,333 crore in Q4 FY17 to Rs 1,931 crore in Q4 FY18.
Profit after tax was Rs 938 crore.
EPS for Q4 FY18 was Rs 4.48 per share.
In Q4 FY18, APSEZ handled cargo of 45.44 MMT, a growth of 6 per cent YoY.
Other important developments
The company continues to reduce its debt. Net debt reduced by Rs 655 crore, from Rs 18,600 crore to Rs 17,945 crore.
Key ratios continue to Improve. While ROCE has improved to 14.4 per cent from 12.1 per cent in FY17, net debt to EBITDA has reduced to 2.54x from 3.27x.
Mr Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ, said, “It has been another year of strong performance. We will continue to give thrust on increasing capacity utilisation and improving operational efficiencies. We expect EBITDA margins to increase by at least 100 BPS every year and peak at around 73 per cent. In order to optimally utilise our cash from operations, we have formulated a capital allocation policy. Also, to give sustainable reward to our shareholders, Board has approved a modified dividend policy. Going forward, we will continue to initiate steps to further improve our transparency, disclosures and corporate governance.”