India’s Adani Ports and Special Economic Zone Limited (APSEZ) has reported a rebound in cargo growth for the second quarter and half year ended 30 September 2020.
As lockdowns easing in India, and globally, the company reported a “spectacular growth” of throughput of cargo across segments and coasts.
In the month of October Adani’s ports, excluding Krishnapatnam Port (KPCL), handled cargo volume of 22 MMT which is a growth of 21% on a year on year basis.
KPCL, the newest port in Adani’s portfolio, handled cargo volume of 3.2 million metric tonnes (MMT).
“For FY21, we expect cargo throughput excluding Krishnapatnam Port to be in the range of 225-230 MMT. In addition, Krishnapatnam Port is expected to handle around 20 MMT in H2 FY21,” the company said in a statement.
For container throughput, the company said Mundra continues to be the largest container handling Port in India with 1.33 million TEU in Q2 FY21.
Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “APSEZ has proven the utility nature of its portfolio of assets by increasing the market share in India to 24% in overall cargo.
“With the economy reopening in stages, APSEZ has returned to growth trajectory registering a cargo volume growth of 36% on a Q o Q basis. Port EBIDTA improves to 71% on account of continuous focus on operational efficiency. Our focus continues to be on preserving cash and ensuring adequate liquidity. We continue to increase our free cash generation, in H1 FY21 cash flow from operations after adjusting for working capital changes, capex and net interest cost, stands at Rs.2,884 cr.
“APSEZ is well on course to achieve 500 MMT of cargo throughput by FY25. Our focus remains on improving the free cash generation and ROCE of all our ports to be in excess of 16%.
“Our businesses and future investments are aligned to sustainable growth with focus on preserving environment. We are committed to reduce carbon emission and become carbon neutral by 2025.
“We expect cargo volume in full year FY21 to be in the range of 245 to 250 MMT including KPCL, which we acquired in October 2020.”