Adani Ports Gains 3% , A New High On Improved Business Prospects

The shares of Adani Ports Special Economic Zones (APSEZ), reached a new high at Rs 934. This is 3% higher than Monday's intraday trade. Due to a better business outlook and strong earnings from the Q1FY23, the stock has risen 10% in the last week and 19% in the month. The S&P BSE Sensex, however, was up 1% during the month.

Q1FY23 was APSEZ's strongest quarter, with record cargo volumes and the highest quarterly EBITDA. Due to the growth in revenue for the ports, logistics, and business, the company reported an unprecedented EBITDA of Rs 3.005 crore. This was up 11% year-on-year (YoY).

Management stated that the company had continued its strong performance in July, recording 100 MMT cargo throughput in the first 99 days of FY23, an unprecedented feat. It said that the company's consolidated revenues (excluding Gangavaram), was nearly flat YoY at Rs 4 638 crore, despite the Rs 725 crore drop in revenue from SEZ businesses.

"With APSEZ set to commission two new terminals in the coming months, this growth story will gain more momentum. The container terminal at Gangavaram Port will become operational from September month, while the 5 MMT LNG terminal at Dhamra will be ready by December end. This LNG terminal has a take-or-pay contract with couple of O&G majors," The company stated.