Adani Ports Gets A Rating Upgrade From ICRA

Ratings agency ICRA has upgraded the rating of Adani Ports and Special Economic Zone (APSEZ) to AAA/Stable from AA+/Stable. The company’s long-term fund-based/non-fund-based facilities, non-convertible debentures (NCDs), and commercial papers have all been upgraded to AAA/Stable. APSEZ announced the development after market hours. On July 18, Adani Ports shares ended at Rs 1,491.95 on the NSE, down by Rs 7.10 or 0.47%.

The company plans to ramp up its investment to Rs 100 billion ($1.2 billion) to boost its southern India trans-shipment container port. Citing people with knowledge of the matter, the report said the company is looking to attract some of the world’s largest ships. The investment in the first-of-its-kind Vizhinjam port in Kerala is part of the second phase of the project, which is expected to finish by 2028. The port, located near the southernmost tip of India, close to international shipping routes and with the deepest shipping channels, is set to receive the first container vessel from Maersk on July 12 as part of a trial run at the 800-meter container berth.

Adani Ports reported a 77% year-on-year (YoY) jump in its consolidated net profit to Rs 2,014.77 crore, up from Rs 1,139.07 crore in the year-ago period. Revenue from operations for the said quarter grew 19% YoY to Rs 6,896.50 crore, up from Rs 5,796.85 crore. The board of India’s largest port operator recommended a dividend of Rs 6 per share. The company delivered 3X the India cargo growth rate and a record volume of 420 MMT for the financial year 2023-2024, registering a volume growth of 24% YoY. APSEZ’s FY24 net profit jumped 50% YoY, while revenue grew by 28% YoY to reach a record Rs 26,711 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 44% YoY to Rs 15,751 crore.