March 4, 2024
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Adani Ports cargo volume up 33% YoY
Adani Ports & Special Economic Zone Ltd (APSEZ) on Monday said its cargo volumes grew 33 per cent year-on-year (YoY) in February. In a filing to BSE, Adani Ports said it handled 35.4 million metric tonnes of total cargo, implying a healthy 33 per cent YoY growth. While most ports observed a YoY jump in volumes, Dhamra Port recorded its highest-ever monthly cargo of 4.22 mmt, the Adani group firm said.
“before the end of the current financial year. The company achieved the milestone of surpassing the 350 mmt cargo volume mark at its domestic ports in 318 days,” Adani Ports said.
Adani Ports added that the record growth continued in the logistics segment with YTD rail volumes of around 542,000 TEUs (up 21 per cent YoY) and GPWIS volumes of around 18 mmt (40 per cent).
In the case of Adani Ports, analysts have target prices in the range of Rs 1,280-1,470 . The Adani group stock last traded at Rs 1338.80 level, up 27.74 per cent. Adani Ports is the largest private player in the country, with a 27 per cent market share that has grown from 10 per cent in FY2014. Kotak Institutional Equities, which recently met with the Adani Ports management, said the Adani group firm expects to further grow its ports market share and sees a minimal impact from the Red Sea issue on cargo.
Kotak Institutional Equities said Adani Ports expects a minimal impact seen from the Red Sea issue on cargo. Adani Ports, it said, spoke of its 10 per cent exposure of cargo to the Red Sea route, despite which the impact on volume has been much lower than that in the past few months.
Adani Ports continues to see a monthly run-rate of 1 million tonnes, even in the ongoing month. “The disruptions happening in the region are concentrated—mostly increase in the travel time of shipping routes by 10-15 days, as ships take a longer route circumventing Africa now and thereby, the supply chain disruption.” Kotak said recently.
On the pricing front, Kotak said Adani Ports did not see any change arising from the issue, while the situation favouring shipping lines in leveraging onto an excess fee owing to disruptions.
