Tag: Adani Ports and SEZ

Adani Ports shares gain on nod to buy 10.4% stake in Gangavaram Port

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Adani Ports & SEZ share price gained over 2 percent after the company said it received approval from the Andhra Pradesh government to acquire a 10.4 percent stake in Gangavaram Port (GPL).

The consideration of the deal is Rs 644.78 crore, the company said, adding that the transaction is expected to be completed within a month.

“The Company has received letter/order from Andhra Pradesh Maritime Board dated 23rd August 2021 received on 24th August 2021 intimating the approval of the proposal of acquisition of 10.4 percent stake of GPL by the Company from Government of Andhra Pradesh,” Adani Ports said.

The acquisition is in line with the company’s strategy of East Coast to West Coast parity and will provide an access to growth from new hinterland markets as it has coverage in resource rich and industrial belt in Eastern, Central & Southern India, it added.

Gangavaram Port is a multi-cargo facility and handled 32.81 MMT of cargo in FY21. It has a capacity of 64 MMT. The operational revenue for financial year 2020-21 was Rs 1,057 crore.

At 11:00 am, the shares of Adani Ports & SEZ were trading 1.68 percent higher at Rs 706.55 apiece on the BSE.

Catch all the latest updates from the stock market here.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Should you buy, sell or hold Adani Ports after Q1 results?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The shares of Adani Ports & Special Economic Zone Ltd (APSEZ) gained in the early trade on Wednesday, a day after the company reported a 77.04 percent rise in consolidated net profit at Rs 1,341.69 crore for the first quarter of FY22.

The country’s largest integrated logistics player had posted a consolidated net profit of Rs 757.83 crore in the corresponding period a year earlier.

Revenue from operations during Q1FY22 jumped 98.8 percent to Rs 4,556.8 crore as compared to Rs 2,292.7 crore, YoY.

Read here: Adani Ports Q1 results: Net profit jumps 77% to Rs 1,342 crore; raises cargo volume guidance to 350-360 mmt

APSEZ revised its cargo volume guidance to 350-360 mmt from 310-320 mmt. Consolidated revenue guidance has been raised to Rs 18,000-18,800 crore from Rs 16,000-16,800 crore.

Here’s what brokerages have to say on APSEZ’s stock and Q1 earnings:

CLSA

APSEZ traffic picked up from a low base in 1Q as ex-Krishnapatnam Port volume grew 52 percent and port Ebitda rose 46 percent YoY. Share gains continued in 1Q: 310 bps in overall cargo and 163 bps for containers. Volumes were driven by coal and containers. Port Ebitda margin rose 100 bps to 71 percent on price hikes and cost-cutting. Earnings were supported by lumpy port-development income that added six percent to Ebitda. The stock has corrected 20 percent from a June peak, CLSA said.

CLSA upgraded the stock to ‘outperform’ from ‘underperform’ and maintained a target price of Rs 816 per share.

Goldman Sachs

The Q1 operationally is in line after adjusting for one-time SEZ revenue and MTM FX loss. The company raised volume guidance but there was only a slight increase in revenue guidance. Diversification of cargo stream, LPG & LNG terminal additions, and new ports will be key growth drivers, Goldman Sachs said.

The brokerage has a ‘buy; rating and a target price of Rs 790 per share.

Citi

Citi maintained a ‘buy’ call with a target price of Rs 1,000 per share. APSEZ remains Citi’s top pick.

The company raised FY22 underlying volume growth guidance by 10 mmt, which Citi believes is conservative. The market share in the port business can take another leg-up via Gopalpur and Karaikal acquisitions. Dominance in the port sector continues to increase, Citi said.

Nomura

Strong results and management’s clarification on key issues are the key highlights, Nomura said. Management highlighted the potential for further acquisitions like Karaikal and Gopalpur ports. Management highlighted potential acquisitions of CONCOR.

Citi has a Buy rating on the stock and raised the target price to Rs 915 per share. It also increased FY22/23 EBITDA estimates by 5%/1%.

At 1:45 pm, the shares of Adani Ports & Special Economic Zone were trading 0.37 percent lower at Rs 702.60 apiece on the BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports Q1 results: Net profit jumps 77% to Rs 1,342 crore; raises cargo volume guidance to 350-360 mmt

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Adani Ports and Special Economic Zone Ltd (APSEZ), the country’s largest integrated logistics player, on Tuesday reported a 77.04 percent rise in consolidated net profit at Rs 1,341.69 crore for the first quarter of fiscal 2022.

The company had posted a consolidated net profit of Rs 757.83 crore in the corresponding period a year earlier.

Revenue from operations during Q1FY22 jumped 98.8 percent to Rs 4,556.8 crore as compared to Rs 2,292.7 crore, YoY.

“APSEZ handled 76 MMT of cargo in Q1 FY22 compared to 41 MMT in Q1 FY21, registering a growth of 83% compared to 33% growth registered by All India cargo. This was on account of continued focus on handling multi commodities across various ports,” the company said in a regulatory filing

The growth in cargo volume was led by dry cargo which grew by 104 percent, container by 69 percent, liquids (including crude) by 57 percent and the addition of new products including LNG and LPG to the cargo basket, it added.

At the operating level, EBITDA increased 60 percent to Rs 2,231.7 crore from Rs 1,395 crore. YoY.

APSEZ revised its cargo volume guidance to 350-360 mmt from 310-320 mmt.  Consolidated revenue guidance has been raised to Rs 18,000-18,800 crore from Rs 16,000-16,800 crore.

EBITDA is now seen at Rs 11,500-12,000 crore versus earlier guidance of Rs 10,200-10,700 crore.

In the container segment, APSEZ handled 2.08 Mn TEUs, a growth of 69 percent as against 4.87 Mn TEUs handled at all India levels, which grew by 51 percent. Container market share increased by 163 bps and now stands at 42.7 percent.

On Tuesday, the shares of Adani Ports & SEZ ended 1.9 percent higher at Rs 705.20 apiece on the BSE.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports’ removal from Sustainability Index: A wake up call for India Inc

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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S&P Dow Jones removing Adani Ports & SEZ from their Sustainability Indices due to the company’s commercial relationship with the Myanmar military makes it clear that sustainability is no more a choice.

The Index, a division of US-based S&P Global, said that the decision was taken as Myanmar’s military has been accused of having committed serious human rights abuses under international laws, following a coup on February 1.

Adani Ports is building a $290 million port in Yangon on land leased from the military-backed Myanmar Economic Corporation (MEC). However, the company has in its defense said stated, “The lump sum, one-time payments made in exchange for the port project were completed as of December 2019”. But, the catch is that the commercial interest and association continues as part of an annual fee for lease of the property. Adani said, “In light of the current situation, all transactions with and payments to MEC and its subsidiaries have been terminated.”

The action by S&P Global could be an outcome of US-imposed sanctions against entities including MEC, which is part of the infamous SDN list — Specially Designated Nationals and Blocked Persons.

This points to the fact that experts do not only assess a company’s sustainability standards based on their operations, but also their partner of choice. This could be a wake-up call for Indian companies with global dreams to conduct thorough due diligence on the business partners as well or be held responsible for their actions.

The answer is not that simple, India and the world is trying to internalise the right template for assessment of the sustainability criteria. An expert points out that Myanmar is strategically important in the region for India to counter China’s dominance and many business groups were rolled out a red carpet to explore business opportunities. It could be debated that there was little understanding that a business association can be perceived as an alleged support in the future actions of the transacting partner.

Lessons to learn from the incident could be that sustainability is assessed in every aspect, even external partners of choice and more importantly, the world is geared up to create an ecosystem of awareness and acceptance by putting pressure from all corners, which may cause collateral damage to those caught in the middle.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports shares gain on bagging contract to develop West Container Terminal at Colombo port

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The share price of Adani Ports and Special Economic Zone (APSEZ) gained over 2 percent in early trade on Tuesday after the company announced that it will partner with John Keells Holdings PLC and Sri Lankan Port Authority to develop the West Container Terminal (WCT) at the Colombo port in Sri Lanka.

In an exchange filing, APSEZ said that it received a Letter of Intent (LOI) from the Ministry of Ports and Shipping of Sri Lanka and the Sri Lanka Ports Authority, acting on behalf of the Government of Sri Lanka, for the development and operations of West Container Terminal (WCT) in Colombo, Sri Lanka.

“APSEZ will partner with John Keells Holdings PLC, Sri Lanka’s largest diversified conglomerate, and with the Sri Lanka Ports Authority (SLPA) as a part of the consortium awarded this mandate. The WCT will be developed on a Build, Operate and Transfer basis for a period of 35 years as a public-private partnership,” the company said.

WCT will have a quay length of 1400 meters and alongside a depth of 20 meters, thereby making it a prime transhipment cargo destination to handle Ultra Large Container Carriers.

The project is expected to boost WCT’s container handling capacity and further consolidate Sri Lanka’s locational advantage as one of the world’s top strategic nodes along the busiest global transhipment route, it added.

The Colombo Port is already the most preferred regional hub for transhipment of Indian containers and mainline ship operators with 45 percent of Colombo’s transhipment volumes either originating from or destined to an Adani port terminal in India.

At 9:40 am, the shares of APSEZ were trading 1.53 percent higher at Rs 730.00 apiece on the BSE as compared to a 0.45 percent gain on the benchmark Sensex.

Catch all the latest updates from the stock market here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Ports shares gain over 2% on acquiring stake in Gangavaram Port

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The share price of Adani Ports and Special Economic Zones rallied more than 2 percent on Thursday after the company announced the acquisition of a 31.5 percent stake in Gangavaram Port.

In an exchange filing, Adani Ports & SEZ said that it was acquiring the 31.5 percent stake held by Windy Lakeside Investment Ltd (an affiliate of Warburg Pincus) in Gangavaram Port Ltd (GPL) for Rs 1,954 crore.

In FY20, GPL had a cargo volume of 34.5 MMT, generated revenue of Rs 1,082 crore, EBITDA of Rs 634 crore (margin of 59 percent) and PAT of Rs 516 crore. GPL is debt-free with a cash balance of over Rs 500 crore, it added.

GPL is the second-largest non-major port in Andhra Pradesh with a 64 MMT capacity established under a concession from the government that extends till 2059. It is all-weather, deep water, multi-purpose port capable of handling fully laden super-cape size vessels of up to 200,000 DWT.

“The location of GPL in the north of AP is a strategic complement to our recent acquisition of the Port of Krishnapatnam that serves the south of AP. We believe that GPL holds great potential to complement its bulk cargo terminals with new cargo categories that we intend to develop,” said Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zones.

At 11:20 am, the shares of Adani Ports & SEZ were trading 2.61 percent higher at Rs 748.60 apiece on the BSE as compared to a 0.68 percent loss in the benchmark Sensex.

Catch all the latest updates from the stock market here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

What’s Afoot: Decoding valuation metrics of Adani Group companies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In CNBC-TV18’s special segment What’s Afoot, Agam Vakil, Sonal Bhutra and Mangalam Maloo have done a spot check on the financial health and valuation metrics of the Adani Group companies – Adani Ports & SEZ, Adani Enterprises, Adani Power, Adani Green and Adani Gas.

Watch the video for details.

To watch other videos in this series, click on the What’s Afoot tab below.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Snowman Logistics rallies 7% after Adani Group buys stake

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Snowman Logistics surged over 7 percent on Monday after Adani Group acquired a majority stake in the company for Rs 296 crore from Gateway Distriparks Ltd.

At 10:10 am, the shares were trading 1.99 percent higher at Rs 43.50 per share on the BSE. The stock price rallied 7.38 percent to touch high of Rs 45.80 apiece intraday.

Shares of Adani Ports & SEZ Ltd also gained 2 percent intraday.

On Friday, Adani Logistics Ltd, a wholly-owned subsidiary of Adani Ports and SEZ, signed definitive agreements to acquire 40.25 percent stake in Snowman Logistics Ltd from Gateway Distriparks Ltd to foray into cold chain logistics.

Snowman is a market leader in cold chain logistics with over 30 percent of capacity amongst integrated organized cold chain service providers in India.

The acquisition gives Adani Logistics platform to double its capacity in the next five years. The buyout is in line with the firm’s strategy to move from the port gate to the customer gate.

“The purchase price of Rs 44 per share represents a 3.2 percent premium to the market price of December 27, 2019, and a 12 percent premium to 60-day average,” it said.

Global brokerage CLSA forecasts this strategic asset to deliver 14 percent growth in port EBITDA over FY19-21CL for Adani Ports & SEZ.

“It adds 16 percent to Adani Logistics revenues and 14 percent to Ebitda. Adani Ports & SEZ acquired Snowman at an EV/Ebitda of 11.8x FY21E, a premium to its own, due to high growth potential led by low organised sector (16 percent) penetration,” CLSA said in a note.

The brokerage expects that funding is not a problem for Adani Ports as its post-acquisition leverage shall rise 1.8 percent in FY21CL.

“In terms of earnings, Snowman M&A adds Adani Ports’ consolidated Ebitda by 0.7 percent in FY21CL,” CLSA added.

The brokerage maintains a ‘Buy’ call on Adani Ports & SEZ with a Target price of Rs 485.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Logistics in talks to buy Snowman Logistics

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Adani Ports and SEZ’s logistics subsidiary is in advanced talks to buy Snowman Logistics, sources with direct knowledge of the development told CNBC-TV18.

Gateway Distriparks, the parent company of Snowman Logistics, is looking to sell the loss-making firm to raise funds and reduce debt, said the sources, who did not want to be named.

Gateway Distriparks had listed Snowman Logistics in September 2014 and it currently owns 40.25 percent stake in the company. Gateway has around Rs 600 crore of debt on its books and is looking at avenues to monetise the poor performing assets.

Gateway Distriparks had recently bought back Blackstone’s stake in Gateway Rail Freight for Rs 850 crore, ending an arbitration proceeding with the private equity investor regarding the terms of exit.

Snowman Logistics is engaged in cold chain logistics with a pan-India presence at 31 locations in 15 cities.

Adani Logistics, a 100 subsidiary of listed company Adani Ports & SEZ, recently acquired Adani Agri Logistics from Adani Enterprises in an all-cash deal at a proposed enterprise value of Rs 1,662 crore.

Snowman Logistics and Gateway Distriparks, however, did not respond to CNBC-TV18’s query. Adani Ports & SEZ too did not comment on the story.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow