APSEZ’s Expansion Drive: Eyes Major Infrastructure Expansion in Philippines

Adani Ports and Special Economic Zone Limited (APSEZ) has expressed its interest in expanding its operation in the Philippines. Karan Adani, Managing Director of APSEZ, disclosed the company’s expansion plan in the Philippines during a courtesy call with President Ferdinand R. Marcos Jr. in Malacañang on May 2.

Adani expressed interest in Bataan as a potential location for port development, citing favorable conditions. The proposed plan entails constructing a 25-meter-deep port capable of accommodating Panamax vessels. Additionally, the Adani Group, encompassing interests in ports, airports, power, and defense, is considering investments in the region.

President Marcos welcomed APSEZ’s expansion aspirations, suggesting a focus on ports for agricultural products to enhance the Philippines’ global competitiveness. Emphasizing the significance of public-private sector collaboration, the president underlined the country’s commitment to opening up its economy.

In financial news, APSEZ reported a notable 76.87 percent surge in consolidated net profit, reaching Rs 2,014.77 crore for the fourth quarter ending March 2024. The company’s consolidated total income also saw an increase to Rs 7,199.94 crore during the same period.

Looking ahead, APSEZ has earmarked a substantial capital expenditure of Rs 10,500–11,500 crore for FY25, projecting cargo volumes of approximately 460–480 MMT. Revenue expectations for FY25 range between Rs 29,000 and 31,000 crore, with an anticipated EBITDA of Rs 17,000 and 18,000 crore and a net debt-to-EBITDA ratio of 2.2–2.5 times.

On May 1, APSEZ received a credit rating upgrade to ‘AAA’ from CARE Ratings, marking a significant milestone as the first large-scale private infrastructure developer to achieve this recognition. The company attributes this rating to its robust integrated model, dominant industry position, strong operational growth, healthy profitability, ample liquidity, and low leverage.

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