Adani Ports & Special Economic Zone (APSEZ) has reported an impressive 26% year-on-year growth in cargo volume for September, contributing to its historic achievement of crossing the 200 million metric tonnes (MMT) milestone in total cargo during the first half of the 2023-24 fiscal year. This remarkable performance encompasses all three major cargo categories—dry bulk, containers, and liquids and gas. As a result of this accomplishment, Adani Ports’ share price surged by 1% on the National Stock Exchange (NSE) to reach Rs 835 on Tuesday.
The company’s growth in cargo volume can be attributed to the robust performance of its key ports, with container cargo experiencing an 18% surge to reach 74.8 MMT, and dry bulk recording a solid 10% increase, totaling 106.3 MMT. Furthermore, Adani Ports continues to experience significant growth in its logistics business, marked by record half-yearly rail volumes of 279,177 twenty-foot equivalent units (TEUs), which represents a substantial 25% year-on-year increase. Additionally, the firm achieved a remarkable 42% growth in GPWIS (General Purpose Warehousing Infrastructure Solutions) volumes, reaching 8.92 MMT.
Adani Ports operates six ports and terminals on the west coast, including Mundra, Dahej, Tuna, Hazira in Gujarat, Mormugao in Goa, and Dighi in Maharashtra. Additionally, the company manages five ports and terminals on the east coast, including Dhamra in Odisha, Gangavaram, Krishnapatnam in Andhra Pradesh, and Kattupalli and Ennore in Tamil Nadu.
In a recent strategic move, Adani Ports initiated a buyback program for certain debt securities in April, aiming to prepay a portion of its near-term loans due in 2024. This approach involves repurchasing debt through tender offers to bondholders, allowing the company to retire some or all of the securities before their maturity date. The private port operator launched a tender offer to buy outstanding 3.375% senior notes due in 2024 for up to $195 million in cash. This decision aligns with the company’s plans to continue purchasing outstanding notes for cash over the next three quarters. Adani Ports intends to fund this buyback from its substantial cash reserves.
The tender offer is set to expire at 5 pm New York time on October 26, 2023, unless extended or terminated earlier. Following the successful completion of this tender offer, the company expects $325 million in notes to remain outstanding, representing another step in its strategic financial management.
Adani Ports’ impressive cargo volume and strategic financial moves reflect its commitment to growth and efficiency in the highly competitive port and logistics sector. With its strong performance, the company remains well-positioned to capitalize on India’s increasing demand for trade and transportation services.
