Adani Ports shares drop over 6% despite 9.5% YoY rise in cargo volume in July; check details

In its business updates filed with the stock exchanges, the Adani Group company said that its cargo volume increased 9.5% year-on-year to 37.3 million tonnes (MT) in July driven by container volume.

Shares of Adani Ports and SEZ dropped more than 6% to a low of ₹1,471 apiece on the NSE amid losses in the broader market despite robust cargo volume growth in July. The Adani Group stock recovered some losses to trade 5.5% lower at ₹1,500 apiece on the NSE at 1:45 pm

Adani Ports & SEZ, in its business update, informed bourses that the container volume surged by 18% in July 2024, which helped enhance overall cargo volumes.

“Logistics assets witnessed strong growth with YTD July 2024 rail volumes growing by 17% YoY to 0.21 Mn TEUs and GPWIS volumes growing by 28% YoY to 7.42 MMT,” APSEZ said in the filing.

During the first four months (April-July) of 2024-25, APSEZ cargo volume rose by 8% to 146.3 MT compared to the year-ago period.

The cargo volume growth was primarily driven by containers (18%), and Liquids & Gas (9%).

Dhamra Port handled the highest-ever monthly volume of 4.6 MMT, APSEZ said.

APSEZ is the largest port developer and operator in India. The company operates seven ports and terminals on the West Coast: Mundra, Tuna, Dahej, and Hazira in Gujarat, Mormugao in Goa, Dighi in Maharashtra, and Vizhinjam in Kerala.

APSEZ operates eight ports and terminals on the east coast: Haldia in West Bengal, Dhamra and Gopalpur in Odisha, Gangavaram and Krishnapatnam in Andhra Pradesh, Kattupalli and Ennore in Tamil Nadu, and Karaikal in Puducherry. These represent 27% of the country's total port volumes.

The company reported 21% revenue growth to ₹7,560 crore for the first quarter of FY 2024-25 compared to the year-ago period.