ADANI PORTS & SEZ 2022-23 Annual Report Analysis

Wed, 19 Jul

ADANI PORTS & SEZ has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ADANI PORTS & SEZ Income Statement Analysis

• Operating income during the year fell 67.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 14.0% in FY23 as against 54.4% in FY22.
• Depreciation charges decreased by 77.6% and finance costs increased by 8.3% YoY, respectively.
• Other income grew by 42.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 30.1% in FY22 to 9.2% in FY23.

ADANI PORTS & SEZ Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	159,340	52,372	-67.1%
Other income	Rs m	21,705	30,879	42.3%
Total Revenues	Rs m	181,045	83,251	-54.0%
Gross profit	Rs m	86,666	-7,337	NA
Depreciation	Rs m	27,396	6,130	-77.6%
Interest	Rs m	25,563	27,695	8.3%
Profit before tax	Rs m	55,412	-10,282	NA
Tax	Rs m	7,459	-5,488	NA
Profit after tax	Rs m	47,952	-4,794	NA
Gross profit margin	%	54.4	-14.0
Effective tax rate	%	13.5	53.4
Net profit margin	%	30.1	-9.2

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ADANI PORTS & SEZ Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 63 billion as compared to Rs 108 billion in FY22, thereby witnessing an decrease of -41.6%.
• Long-term debt stood at Rs 441 billion as compared to Rs 397 billion during FY22, a growth of 11.0%.
• Current assets fell 59% and stood at Rs 66 billion, while fixed assets fell 6% and stood at Rs 717 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 784 billion as against Rs 939 billion during FY22, thereby witnessing a fall of 16%.

ADANI PORTS & SEZ Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	382,500	287,027	-25.0
Current Liabilities	Rs m	108,311	63,227	-41.6
Long-term Debt	Rs m	396,915	440,617	11.0
Total Liabilities	Rs m	938,834	784,460	-16.4
Current assets	Rs m	159,032	65,843	-58.6
Fixed Assets	Rs m	760,818	716,669	-5.8
Total Assets	Rs m	938,834	784,460	-16.4

ADANI PORTS & SEZ Cash Flow Statement Analysis

• ADANI PORTS & SEZ's cash flow from operating activities (CFO) during FY23 stood at Rs 27 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -40 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -35 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -48 billion from the Rs 44 billion net cash flows seen during FY22.

ADANI PORTS & SEZ Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	98,002	27,140	-72.3%
Cash Flow from Investing Activities	Rs m	-72,116	-40,250	-
Cash Flow from Financing Activities	Rs m	20,415	-34,517	-
Net Cash Flow	Rs m	44,188	-47,626	-

Current Valuations for ADANI PORTS & SEZ

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.2, an decline from the EPS of Rs 22.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 730.5, stands at 30.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 30.1 times.
• The company's price to cash flow (P/CF) ratio stood at 1,118.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	75.4	24.2
TTM Earnings per share	Rs	22.7	-2.2
Diluted earnings per share	Rs	22.2	-2.2
Price to Cash Flow	x	22.2	1,118.4
TTM P/E ratio	x	33.8	30.5
Price / Book Value ratio	x	4.2	5.2
Market Cap	Rs m	1,625,471	1,493,574
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for ADANI PORTS & SEZ

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.5x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 0.6x during FY23, from 3.2x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -1.7% during FY23, from 12.5% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 2.4% during FY23, from 10.4% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 2.9% during FY23, from 7.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.5	1.0
Debtors’ Days	Days	6	9
Interest coverage	x	3.2	0.6
Debt to equity ratio	x	1.0	1.5
Return on assets	%	7.8	2.9
Return on equity	%	12.5	-1.7
Return on capital employed	%	10.4	2.4

To see how ADANI PORTS & SEZ has performed over the last 5 years, please visit here.

ADANI PORTS & SEZ Share Price Performance

Over the last one year, ADANI PORTS & SEZ share price has moved down from Rs 748.6 to Rs 730.5, registering a loss of Rs 18.1 or around 2.4%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for ADANI PORTS & SEZ and quarterly results for ADANI PORTS & SEZ)