- 08 Feb 2023
- ICICIdirect Research
Adani Ports' revenue, EBITDA guidance maintained for FY23, net debt to be lowered in FY24, capex curtailed
ADANIPORTS - 1325 Change: -5.95 (-0.45 %)News: Adani Ports Q3FY23 adjusted numbers were largely in line with I-direct estimates on all fronts. However, due to forex loss of Rs 315 crore, reported PAT was below I-direct estimates. Revenues grew 18% YoY to v 4786 crore, in line with I-direct estimate of Rs 4725 crore (11% growth in APSEZ port cargo volumes). Adjusted EBITDA margin remained rangebound in 62-63% levels, leading to 15% growth in ex-forex EBITDA to Rs 3011 crore (I-direct estimate of Rs 2929 crore). Adjusted PAT, however, de-grew 16% to Rs 1316 crore (I-direct estimate: Rs 1668 crore), due to forex loss of Rs 315 crore in the current quarter (vs. loss of Rs 13 crore in base)
Views: FY24 guidance includes ~18% growth in EBITDA to | 14500-15000 crore and net debt of Rs 38600 crore while capex has been lowered to Rs 4000-4500 crore. Further, it has prioritised loan payoff vs. capex in FY24 (net debt to be lowered by v 5000 crore and pledging reduced to zero in FY24). The company currently sits on a comfortable below 1 (D/E ratio). Logistics vertical continued to see strong growth (up 64% YoY and 36% QoQ). Concor's acquisition would be evaluated in terms with streching of debt to EBITDA and the management intends to maintain it at 2.5x
Impact: Positive