Adani Group eyeing opportunities in Bangladesh, East African nations, after $553 mn Sri Lankan port: Karan Adani

Karan Adani, CEO of Adani Group and son of billionaire Gautam Adani, recently told a gathering in Sri Lanka that the Adani Group is looking at opportunities for investment after announcing a significant $553 million investment from the US government for its West Container Terminal in Colombo. Adani, addressing a press meet in Colombo, Adani said Adani Ports is eyeing further “opportunities in our neighboring countries", Bloomberg reported.

He said Adani Ports is looking at opportunities in Bangladesh, East African and Southeast Asian nations, including Tanzania and Vietnam, adding to its list of Sri Lanka and Israel.

He added the US financing, backed by the International Development Finance Corporation, is a "reaffirmation" of international support for the Indian conglomerate's companies.

Last week, the US International Development Finance Corporation said it will provide funding for a deep-water shipping container terminal in the Port of Colombo, which is being developed by Adani Ports as a joint venture.

Talking about the ports business of Adani Group, Adani said 90 per cent of Adani Ports and Special Economic Zone's revenues come from port accounts and this trend will continue as the company continues to expand in India. “Trade is booming, we are just doing a catch-up game. We are always short of capacity and that is hurting Indian trade," he added.

In September 2021, Adani Ports signed a $700-million deal with the Sri Lanka Ports Authority (SLPA) and Sri Lankan conglomerate John Keells Holdings, to jointly develop the terminal.

The Colombo West International Terminal Pvt. Ltd was set up as a consortium comprising Adani Ports, John Keells Holdings and SLPA, to build the port in a Build-Operate-Transfer arrangement spanning 35 years. Adani Ports holds 51 per cent stake in it.

Last Wednesday, in a post on X, following the announcement on the West Container Terminal, Group Chairman Gautam Adani said: “This initiative is set to generate significant employment opportunities, boost economic growth, and enhance regional shipping capacity. The Adani Group is proud to be a part of this journey.” While Mr. Adani has become a key foreign investor in Sri Lanka, he is also looking at projects with India’s other neighbours, including Bangladesh, Nepal and Myanmar.

Adani Ports Q2 results

Last week, Adani Ports & Special Economic Zone Ltd said its net profit grew 4.19 per cent year-on-year (YoY) to Rs 1,747.85 crore for the September quarter compared with Rs 1,677.48 crore in the same quarter last year. Revenue for the quarter rose 27.6 per cent YoY to Rs 6,646.41 crore compared with Rs 5,210.80 crore in the same quarter last year.

For the first half of the financial year, profit was up 33 per cent at Rs 3,881 rcore while sales were up 26 per cent at Rs 12,894 crore. Ebitda for the first half of the ongoing fiscal rose 49 per cent YoY to Rs 7,429 crore.

“Adani Ports achieved another milestone by registering its highest ever half yearly revenue of Rs 12,894 crore, Ebitda of Rs 7,429 crore and cargo volumes of 203 MMT during H1 FY24. The splendid performance was on the back of a 14 per cent YoY increase in cargo volume coupled with improving operational efficiencies at our ports, which has resulted in our domestic ports Ebitda improving by 220 bps YoY to 72 per cent during H1 FY24.” said Karan Adani, CEO and Whole Time Director of Adani Ports.

Adani Ports said it added 11 rakes, Loni ICD, and warehouses at Mumbai and Indore to its portfolio. "The improved utilisation of logistics assets have led to Adani Ports recording its highest ever half-yearly rail and GPWIS volumes, with rail volumes growing at an impressive 25 per cent YoY and GPWIS volumes growing at 42 per cent YoY,” Adani said.

Shares of Adani Ports were trading at Rs 811.70, 0.10 per cent down, at 12.30 PM.

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