Adaniports Ltd — Q2 FY24
Adani Ports delivered its strongest ever half-yearly result, with H1 FY24 operating revenue of INR 12,894 crore (+26% YoY) and EBITDA of INR 7,429 crore (+49% YoY), driven by re...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
88%Questions answered0Evaded / deflected12Questions audited
Answered
High priority
Timeline for Colombo Port and West Bengal Greenfield project, and CapEx phasing.
Asked by Abhiram Iyer, Deutsche Bank
Provided specific timelines for both projects.
Read the exchange
Question
So my first question was to do with the Colombo Port, as well as the West Bengal Greenfield project. What's the timeline for these? How are you sort of putting in CapEx for these going forward in FY 2024, sorry, FY 2025 and FY 2026?
Karan Adani, CEO
So on the Colombo Port, we expect commissioning and operationalizing of phase one by December of 2024. ... On West Bengal Tajpur Port, we are still waiting for a letter of award, LOA. ... Once we get, it will be 18-24 months before we start any construction over there.
Partial answer
High priority
Reason for maintaining guidance despite H1 outperformance.
Asked by Abhiram Iyer, Deutsche Bank
Did not explain why guidance unchanged; only said they expect higher end.
no specific reason givenvague commitment to higher end
Read the exchange
Question
any particular reason why the guidance still remains the same despite sort of outperformance at the half-yearly mark? Are we expecting a slowdown into the second half, or this is more of the company being prudent and cautious in their outlook?
Karan Adani, CEO
On guidance, as I said, we, we have given the guidance at the start of the year. We maintained that we would be looking at the higher end of our guidance, in terms of what we will achieve.
Answered
High priority
Update on Haifa operations and impact from Middle East tensions.
Asked by Imtiaz Saifuddin, Barclays
Provided specific volume data and confirmed no impact.
Read the exchange
Question
would you be able to provide an update on your Haifa operations, post the closure of your second quarter numbers, and any impact, from the ongoing tensions in the Middle East, or any changes to your guidance?
Karan Adani, CEO
Right now, we have not seen any slowdown in the traffic. Incidentally, we have done, as I said, in month of October, we have done 1.1 million metric ton, which is what we have been doing in the last six months as well.
Answered
Medium priority
Reason for big revision in Myanmar project sales price.
Asked by Imtiaz Saifuddin, Barclays
Explained the rationale for the price revision.
Read the exchange
Question
You revised down the sales price from $260 million to $30 million in May and took a $155 million impairment loss. Can you just provide some color on this transaction and why the big revision?
D. Muthukumaran, CFO
The reason why actually we sold the asset at that point in time is because we've been pursuing an opportunity to, you know, either commission the project or actually sell it as soon as possible. So we haven't been able to complete the project, so we had to sell the project on an as-is basis.
Partial answer
High priority
CapEx guidance revision after H1 spend of INR 38 billion.
Asked by Imtiaz Saifuddin, Barclays
Explained the difference but did not provide a revised CapEx number.
clarified definition but did not give revised numberdeferred to leverage target
Read the exchange
Question
In the first half, I believe the total was something like INR 38 billion. That's more than half of your INR 45 billion rupee guidance for full year FY 2024. Any revision in your full year guidance then?
D. Muthukumaran, CFO
See, it relates to the very first question that came up in the call. You know, this INR 3,800 is a gross, which includes the, you know, the capital expenditure for Sri Lanka. Our INR 4,500 was only the equity contribution.
Answered
Medium priority
How DFC funding will be provided to Colombo JV.
Asked by Asmeeta Sidhu, MetLife Investment Management
Clearly stated it is direct project funding.
Read the exchange
Question
could I just have any clarification on how this funding will be provided to the Colombo JV? Will it be sort of a direct cash infusion, or will there be sort of other funding sources that will be given to the JV that the company may know of at this time?
D. Muthukumaran, CFO
So, this is a project funding, direct cash into the JV, and it's a 20-year loan what we are taking.
Answered
Medium priority
Reason for subsidiary changing to new tax regime.
Asked by Asmeeta Sidhu, MetLife Investment Management
Explained the tax regime change and its financial impact.
Read the exchange
Question
Just with regards to the new tax regime that I believe was mentioned, taken up for one of the subsidiaries. Could you share with us a little bit more on what this tax regime is, and why the subsidiary has decided to change the regime to this one?
D. Muthukumaran, CFO
Actually, this is basically the choice that we have of continuing with 35% tax in that company versus moving to 25%, which is a lower tax. ... we have reached a point where it is better to move to a lower regime of 25% in future, although we will lose the INR 455 crore net MAT credit that we have paid in the past.
Partial answer
Medium priority
International strategy and impact of IMEC on Haifa.
Asked by Priyankar Biswas, BNP Paribas
Reiterated existing strategy without specifics; IMEC comment was general.
no specific new details on strategyIMEC impact described as long-term, no quantification
Read the exchange
Question
So what exactly is the international strategy that APSEZ is following? ... And second, given that post the G20, IMEC has also been announced, so would that change Haifa's potential than what you had said probably during the acquisition of Haifa itself?
Karan Adani, CEO
So on international strategy, as we've always been telling that, we are looking for high growth countries, where we would be looking at brownfield expansion or taking over an existing asset through government privatization. ... IMEC, it's definitely... it's definitely a very strategic move.
Answered
Medium priority
Competitive dynamics on coal coastal movement.
Asked by Priyankar Biswas, BNP Paribas
Provided specific volume increases at various ports.
Read the exchange
Question
Given that the competition is increasing on those aspects, especially on the eastern ports, can you just throw some light on the competitive dynamics that is at play right now, especially at least on the coal?
Subrat Tripathy, CEO Ports Business
So as you correctly said, so the, what is popularly called the RSR route, the rail cum, sea cum, rail route, in which you would be aware that we have made inroads into procuring tangible volumes from the MCL...
Answered
Medium priority
Currency of Haifa Port revenue and hedging.
Asked by Nikhil Nigania, Sanford C. Bernstein
Directly answered the currency.
Read the exchange
Question
Wanted to understand, what is the primary currency of the revenue or the tariffs at the Haifa Port? Is it the local currency, which has been volatile, or is it in U.S. dollars, lastly?
Karan Adani, CEO
It is local currency, NIS.
Answered
Medium priority
Reason for port revenue growth lower than volume growth.
Asked by Nikhil Nigania, Sanford C. Bernstein
Gave a clear reason.
Read the exchange
Question
So the quarter volumes, I could see the port revenue was up lower than the volume growth in the port business, despite that currency being, dollar being the same this quarter, nearly the same to last quarter. So was it cargo mix difference or what was the reason for that...?
Karan Adani, CEO
Mainly it is a cargo mix difference.
Answered
Medium priority
Discrepancy between JV PAT and P&L joint venture income.
Asked by Mohit Kumar, ICICI Securities
Explained the discrepancy due to Dhamra LNG loss.
Read the exchange
Question
My question is, if I look at Q2 FY 2024 PAT contribution with JV, which has improved materially, it has come for AICTPL is INR 151 crore, ACMTPL is INR 59 crore, and IOAVL JV is INR 59 crore. But when I look at your P&L, the joint venture associate income is merely INR 45 crore in this quarter. Am I missing something?
D. Muthukumaran, CFO
Actually, there is another company, which is Dhamra LNG, that has now been consolidated in this quarter. And being, you know, sort of in a ramp-up stage, there is a loss coming from Dhamra.