The company’s Full Time Director and CEO Karan Adani said in a statement on February 7 that Adani Ports and Special Economic Zone plans to pay off the debt of Rs 5000 crore by the upcoming financial year 2023-24.
Karan Adani, in a message from the recorded video, said, “We are looking at full loan repayment and prepayment of about Rs 5000 crore, which will significantly improve our net debt/Ebitda ratio and take it to 2.5 times by March 2024.” will bring closer to.”
The announcement of Adani Ports and Special Economic Zone to reduce debt in 2023-24 comes at a time when the entire Adani group was plunged into trouble following a report by US-based Hindenburg Research.
The result has been a fall in the share prices of group companies, forcing the group to cancel its Rs 20,000 crore follow-on share sale.
Karan Adani said that apart from debt reduction, Adani Ports will invest Rs 4,000-4,500 crore as capital expenditure in 2023-24.
The capital expenditure will be mainly used to expand Mudra Port of Adani Port.
Adani Ports will look to increase its earnings before interest, depreciation, taxes, and amortization (EBITDA) to Rs 14,500 – 15,000 crore in the next financial year in 2023-24, Karan Adani said.
That has increased to Rs 12,600 crore from Rs 12,200 crore guided for FY23.
The company statement said that the net debt to EBITDA ratio of APSEZ is within the 3x-3.5x guidance range, while the leverage ratio is below one.
Adani Ports, on February 7, reported a 12.94 percent decline in consolidated profit at Rs 1,336.51 crore for the third quarter that ended December 2022.
According to a regulatory filing, the country’s largest integrated logistics player posted a consolidated profit of Rs 1,535.28 crore a year ago.
Its total consolidated revenue rose to Rs 5,051.17 crore in the December 2022 quarter from Rs 4,713.37 crore in the same period last year.
The company’s total expenditure in October-December 2022 increased to Rs 3,507.18 crore compared to Rs 2,924.30 crore in the same period last year.
Revenue rose 25 percent year-on-year to Rs 4,753 crore, according to average estimates. In comparison, net profit is estimated to grow by 11.8 percent at Rs 1,647.1 crore.
Karan Adani said that the company has completed the transactions of Haifa Port, IOTL, ICD Tumb, Ocean Sparkle, and Gangavaram Port and is making good progress toward transforming its business model into a shipping company.
The company stated that it had handled 252.9 MMT (million metric tonnes) of cargo in the first nine months of the current financial year.
Karan Adani said, “Performance on several debt contracts has been above desired levels. We have an impeccable history of servicing our debt obligations, and our internal accruals allow us to meet the scheduled debt payments for any financial year without major challenges.” without being allowed to complete.”
The company said the return on capital employed (ROCE) is continuously improving at mature ports with a focus on better capacity utilization and efficiency.
He added that the ROCE of the logistics business has more than doubled compared to FY22. It added that ramping up operations at ports acquired in recent years will boost its ROCE by 20 percent.
Since the publication of the Hindenburg Report on January 24, Gautam Adani’s Adani Group has wiped off nearly $117 billion in market capitalization, its worst ever. That is almost half of the combined market value of the group.
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