During the quarter, Adani Ports' the consolidated EBIDTA increased by 20% to Rs. 8356.5 mn compared to Rs. 6981.0 mn in the same period last year. It has acquired 100% stake in the Dhamra Port Company at an enterprise value of Rs 55000 mn. Maintain buy

1. CMP 230.55
Target Price 280.00
ISIN: INE742F01042
JUNE 14th
2014
ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD
Result Update (CONSOLIDATED BASIS): Q4 FY14
BUY
Index Details
Stock Data
Sector Marine Port & Services
BSE Code 532921
Face Value 2.00
52wk. High / Low (Rs.) 261.45/118.00
Volume (2wk. Avg.) 737000
Market Cap (Rs. in mn.) 477250.03
Annual Estimated Results (A*: Actual / E*: Estimated)
YEARS FY14A FY15E FY16E
Net Sales 48239.90 53546.29 58365.46
EBITDA 36039.80 39778.71 43238.56
Net Profit 17396.40 20510.44 23089.84
EPS 8.40 9.91 11.15
P/E 27.43 23.27 20.67
Shareholding Pattern (%)
1 Year Comparative Graph
ADANI PORTS & SEZ LTD S&P BSE SENSEX
SYNOPSIS
Adani Ports & Special Economic Zone Ltd is largest
port among Indian Commercial both in bulk &
container Cargo Segments.
Consolidated Total Income including other income
for Q4 FY14 increased by 19.15% to Rs. 12887.8 mn
vs. Rs 10816.9 mn in Q4 FY13.
The consolidated EBIDTA increased by 20% to Rs.
8356.5 mn compared to Rs. 6981.0 mn in the same
period last year.
Consolidated PAT without considering Abbot Point,
for the current quarter increased by 43% to Rs.
5304.8 mn as compared to Rs. 3700 mn in Q4 FY13.
The consolidated cargo handled by the company was
28.85 MMT in Q4 FY14, an increase of 12%, over
same period last year.
Adani Ports has acquired 100% stake in the Dhamra
Port Company Ltd (DPCL) at an enterprise value of
Rs 55000 mn.
Mundra Port crossed 100 MMT mark by handling
101.12 MMT cargo in FY14, the only Commercial
port in India to achieve this milestone.
Dahej Port handled cargo of 7.89 MMT in the FY14, a
rise of 4% as compared to 7.56 MMT in previous
year.
Consolidated total income for the year FY14
increased by 43% to Rs 55076.2 mn compared to Rs
38410.7 mn in the last year.
Adani Ports won Ennore Container Terminal project,
it will mark as foray into container business on
eastern coast of India.
The Company has recommended Dividend of Re. 1/
per equity share of Rs. 2 each for the FY 2013-14.
Net Sales and PAT of the company are expected to
grow at a CAGR of 18% and 14% over 2013 to 2016E
respectively.
PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
Adani Ports & SEZ Ltd 230.55 477250.03 8.40 27.43 5.44 50.00
Global Offshore Services Ltd 334.75 8407.80 9.29 36.60 2.42 12.00
Gujarat Pipavav Port Ltd 113.60 54918.80 4.50 25.24 3.91 0.00
Great Eastern Shipping Company 378.85 57250.10 13.58 27.96 1.10 90.00

2. Analysis & Recommendation - ‘BUY’
Consolidated Total Income including other income for Q4 FY14 increased by 19.15% to Rs. 12887.8 mn vs. Rs
10816.9 mn in Q4 FY13. The consolidated EBIDTA increased by 20% to Rs. 8356.5 mn compared to Rs. 6981.0
mn in the same period last year. Consolidated PAT without considering Abbot Point, which had been divested
last year, for the current quarter increased by 43% to Rs. 5304.8 mn as compared to Rs. 3700 mn in the same
period last year. The consolidated cargo handled by the company was 28.85 MMT in Q4 FY14, an increase of
12%, over same period last year.
During the current quarter Adani Ports Mundra handled 26.39 MMT cargo with 15% growth in Q4 FY14
compared to growth of 1% for at all major ports. In case of containers, it handled 0.71 million TEUs with 49%
growth as compared to a no growth at all major ports. Mundra Port crossed 100 MMT mark by handling 101.12
MMT cargo in FY14, the only Commercial port in India to achieve this milestone and holds No 1 position
amongst all commercial ports in terms of cargo handling. Adani Ports won Ennore Container Terminal project,
it will mark as foray into container business on eastern coast of India.
Adani Ports has acquired 100% stake in the Dhamra Port Company Ltd (DPCL) at an enterprise value of Rs
5500 crores. The Dhamra port acquisition now gives an opportunity to replicate the development and
phenomenal growth of the Mundra port on the eastern coast of India and thereby continue to execute on
company’s pan India strategy. Hence, we recommend ‘BUY’ for the ‘Adani Ports & SEZ Ltd’ with target price of
Rs. 280.00 for medium to long term investment.
QUARTERLY HIGHLIGHTS (CONSOLIDATED)
Results Updates- Q4 FY14,
Months Mar-14 Mar-13 % Change
Net Sales 11158.60 10355.10 7.76%
Net Profit 5298.00 7103.10 -25.41%
EPS 2.56 3.55 -27.81%
EBITDA 8356.50 6981.00 19.70%
Consolidated net profit declines to Rs. 5298.00 million against Rs. 7103.10 million in the corresponding quarter
ending of previous year, a decrease of 25.41%. Revenue for the quarter rose by 7.76% to Rs. 11158.60 million
from Rs. 10355.10 million, when compared with the prior year period. Reported earnings per share of the
company stood at Rs. 2.56 a share during the quarter, registering 27.81% decreased over previous year period.
Profit before interest, depreciation and tax is Rs. 8356.50 million as against Rs. 6981.00 million in the
corresponding period of the previous year.

3. Break up of Expenditure
Break up of
Expenditure
Rs. in Mn
Q4 FY14 Q4 FY13
%
Change
Operating Expenses 3426.60 3113.70 10%
Employee Benefit
Expenses
423.50 349.50 21%
Depreciation &
Amortization Expense
1351.60 1244.30 9%
Other Expenses 698.00 581.60 20%
Adani Ports Acquires Dhamra Port
Adani Ports and Special Economic Zone have executed a definitive agreement with L&T Infrastructure
Development Projects Limited and Tata Steel Limited to acquire 100% stake in the Dhamra Port Company
Limited (DPCL) at an enterprise value of Rs 5500 crores.
Following the acquisition, the 2nd phase of development will be initiated within 90 days and completion targeted
in 30 months. This continued expansion will allow the Dhamra port exceed 100 million tons of cargo capacity by
the year 2020 and therefore allow Adani Ports to fulfill its stated vision of becoming a 200 million metric tons
ports business well before the year 2020.
Latest Updates
• Adani ports Mundra handled 101.12 MMT cargo making it the largest commercial port in India. It registered
a 23% growth in the year FY14 compared to growth of 2% for cargo at all major ports. In case of containers,
it handled 2.39 million TEUs with 38% growth as compared to de-growth by 3% in container volume at all
major ports.
• The port at Dahej continues to perform very well. It handled cargo of 7.89 MMT in the year FY14, a rise of 4%
as compared to 7.56 MMT in corresponding period previous year.
• The port at Hazira handled a cargo of 0.94 MMT in Q4 FY14 and 3.73 MMT in the year FY14.
• Mundra Port crossed 100 MMT mark by handling 101.12 MMT cargo in FY14, the only Commercial port in
India to achieve this milestone and holds No 1 position amongst all commercial ports in terms of cargo
handling.

4. • Adani Ports won Ennore Container Terminal project, it will mark as foray into container business on eastern
coast of India.
• Handled highest Coal volume 36.21 MMT during FY 2013-14 surpassing Paradip Port 32.07 MMT 0
• Deepest draft vessel handled at CT3 (MSC Susanna, a 336 meter vessel with a draft of 15.30 meter on 22nd
March’14 – National record).
• Adani Ports and Special Economic Zone Ltd has recommended Dividend @ 50% (Re. 1/-) per equity share of
Rs. 2 each for the financial year 2013-14.
• Progress on Other Port Projects and Other Highlights:
The coal terminal at Visakhapatnam port was completed 8 months ahead of schedule. This marks entry of
Adani Ports on the east coast of India. The coal terminal at Murmugao is also completed.
Project execution of Tuna Tekra at Kandla is as per the schedule. The company has also signed the
concession agreement with Ennore Port Ltd. (now changed to Kamarajan Port Ltd.).
COMPANY PROFILE
The Adani Group is one of India’s leading business houses with revenue of over $8.7 billion. Founded in 1988,
Adani has grown to become a global integrated infrastructure player with businesses in key industry verticals -
resources, logistics and energy. The integrated model is well adapted to the infrastructure challenges of the
emerging economies.
The Group protects biodiversity in ecologically sensitive areas like Mundra and undertakes initiatives to reduce
CO2 emissions.
Resources means obtaining coal from mines and trading; in future it will also include oil and gas production.
Adani is developing and operating mines in India, Indonesia and Australia as well as importing and trading coal
from many other countries. Currently, it is one of the largest coal importers in India. It also has extensive
interests in oil and gas exploration. Extractive capacity is scheduled to increase from 4 MMT of thermal coal in
2013 to 200 MMT per annum by 2020.

5. Logistics denotes a large network of ports, Special Economic Zone (SEZ) and multimodal logistics - railways and
ships.
Adani owns and operates five ports – Mundra, Dahej, Hazira, Goa and Visakhapatnam in India. The Mundra Port,
which is the largest port in India, benefits from deep draft, first-class infrastructure and SEZ status. It recently
crossed the 100 MMT mark of cargo handling in a year. Adani is also developing ports at Kandla and Ennore in
India.
Energy involves power generation & transmission and gas distribution.
Adani is the largest private thermal power producer in India. The Company power generation capacity is
expected to increase from current 8,620 MW to 9,280 MW.
Currently, the Company developing six power projects across Gujarat, Maharashtra, Rajasthan and Madhya
Pradesh.

6. FINANCIAL HIGHLIGHT (CONSOLIDATED) (A*- Actual, E* -Estimations & Rs. In Millions)
Balance Sheet as at March 31st, 2013 -2016E
FY13A FY14A FY15E FY16E
SOURCES OF FUNDS
Shareholder's Funds
Share Capital 4034.90 4168.20 4168.20 4168.20
Reserves and Surplus 59927.80 83512.80 104023.24 127113.08
1. Sub Total - Net worth 63962.70 87681.00 108191.44 131281.28
2. Minority Interest 1423.10 1436.70 1465.43 1494.74
Non Current Liabilities
Long term Borrowings 102575.00 112884.10 119657.15 123246.86
Deferred Tax Liabilities 5529.70 6744.70 7688.96 8457.85
Other Long term Liabilities 5938.60 7335.90 8436.29 9364.28
Long term Provisions 1042.50 3690.20 4502.04 5132.33
3. Sub Total - Non Current Liabilities 115085.80 130654.90 140284.43 146201.32
Current Liabilities
Short term Borrowings 4047.00 4055.50 3852.73 3737.14
Trade Payables 1693.50 2648.00 3257.04 3778.17
Other Current Liabilities 21383.30 17042.40 15679.01 16306.17
Short Term Provisions 3000.50 3253.10 3448.29 3586.22
4. Sub Total - Current Liabilities 30124.30 26999.00 26237.06 27407.70
Total Liabilities (1+2+3+4) 210595.90 246771.60 276178.37 306385.04
APPLICATION OF FUNDS
Non-Current Assets
a) Fixed Assets 142933.20 151474.60 160563.08 171435.93
b) Goodwill on consolidation 403.50 403.50 423.68 449.10
c) Non-current investments 770.80 574.80 620.78 658.03
d) Deferred Tax Asset 243.90 1.00 0.00 0.00
e) Long Term loans and advances 11510.50 30928.00 38969.28 46763.14
f) Trade Receivable 815.80 5043.00 5648.16 6156.49
g) Other non-current assets 3683.40 3906.60 4062.86 4184.75
1. Sub Total - Non Current Assets 160361.10 192331.50 210287.84 229647.44
Current Assets
Current Investments 1445.10 59.40 68.31 75.14
Inventories 979.50 1694.40 2033.28 2358.60
Trade receivables 7200.20 9232.60 10986.79 12744.68
Cash and Bank Balances 8305.50 5139.20 5653.12 6331.49
Short-terms loans & advances 17471.50 32399.00 40346.20 47608.52
Other current assets 14833.00 5915.50 6802.83 7619.16
2. Sub Total - Current Assets 50234.80 54440.10 65890.53 76737.60
Total Assets (1+2) 210595.90 246771.60 276178.37 306385.04

7. Annual Profit & Loss Statement for the period of 2013 to 2016E
Value(Rs.in.mn) FY13A FY14A FY15E FY16E
Description 15m 12m 12m 12m
Net Sales 35766.30 48239.90 53546.29 58365.46
Other Income 2644.40 6836.30 7383.20 7752.36
Total Income 38410.70 55076.20 60929.49 66117.82
Expenditure -12006.50 -19036.40 -21150.78 -22879.26
Operating Profit 26404.20 36039.80 39778.71 43238.56
Interest -5418.40 -9767.60 -8693.16 -9127.82
Gross profit 20985.80 26272.20 31085.54 34110.74
Depreciation -4219.70 -6494.80 -7274.18 -8001.59
Profit Before Tax 16766.10 19777.40 23811.37 26109.15
Tax -1230.80 -2367.40 -3285.97 -3002.55
Profit After Tax 15535.30 17410.00 20525.40 23106.59
Extraordinary Items 853.00 0.00 0.00 0.00
Minority Interest -156.10 -13.60 -14.96 -16.76
Net Profit 16232.20 17396.40 20510.44 23089.84
Equity capital 4006.80 4140.10 4140.10 4140.10
Reserves 59927.80 83512.80 104023.24 127113.08
Face value 2.00 2.00 2.00 2.00
EPS 8.10 8.40 9.91 11.15
Quarterly Profit & Loss Statement for the period of 30th Sep, 2013 to 30th June, 2014E
Value(Rs.in.mn) 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14E
Description 3m 3m 3m 3m
Net sales 11498.80 10798.40 11158.60 13390.32
Other income 2573.10 1638.40 1729.20 1815.66
Total Income 14071.90 12436.80 12887.80 15205.98
Expenditure -3939.20 -4313.00 -4531.30 -5382.91
Operating profit 10132.70 8123.80 8356.50 9823.07
Interest -4116.60 -1408.80 -736.30 -1133.90
Gross profit 6016.10 6715.00 7620.20 8689.17
Depreciation -1828.10 -1833.40 -1351.60 -1371.87
Profit Before Tax 4188.00 4881.60 6268.60 7317.30
Tax -763.70 -386.60 -963.80 -1009.79
Profit After Tax 3424.30 4495.00 5304.80 6307.51
Minority Interest -6.00 10.10 -6.80 -7.14
Net Profit 3418.30 4505.10 5298.00 6300.37
Equity capital 4140.10 4140.10 4140.10 4140.10
Face value 2.00 2.00 2.00 2.00
EPS 1.65 2.18 2.56 3.04

8. Ratio Analysis
Particulars FY13A FY14A FY15E FY16E
EPS (Rs.) 8.10 8.40 9.91 11.15
EBITDA Margin (%) 73.82% 74.71% 74.29% 74.08%
PBT Margin (%) 46.88% 41.00% 44.47% 44.73%
PAT Margin (%) 43.44% 36.09% 38.33% 39.59%
P/E Ratio (x) 28.45 27.43 23.27 20.67
ROE (%) 24.30% 19.86% 18.98% 17.60%
ROCE (%) 17.96% 20.79% 20.31% 19.84%
Debt Equity Ratio 1.67 1.33 1.14 0.97
EV/EBITDA (x) 21.16 16.34 14.96 13.83
Book Value (Rs.) 31.91 42.34 52.25 63.41
P/BV 7.22 5.44 4.41 3.64
Charts

9. OUTLOOK AND CONCLUSION
At the current market price of Rs.230.55, the stock P/E ratio is at 23.27 x FY15E and 20.67 x FY16E
respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.9.91 and Rs.11.15
respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 14% over 2013 to 2016E
respectively.
On the basis of EV/EBITDA, the stock trades at 14.96 x for FY15E and 13.83 x for FY16E.
Price to Book Value of the stock is expected to be at 4.41 x and 3.64 x respectively for FY15E and FY16E.
We recommend ‘BUY’ in this particular scrip with a target price of Rs.280.00 for Medium to Long term
investment.
INDUSTRY OVERVIEW
Industry Structure:
Ports:
Indian Scenario: India has an extensive coastline of 7,517 kilometers (excluding the Andaman and Nicobar
Islands), with a port industry that has grown dramatically, from five ports with cargo traffic tonnage handled of
between 19 and 20 mmt at the time of independence, to 13 Major Ports and 187 Non-major Ports with total
cargo traffic tonnage handled of 934.88 mmt for the fiscal year 2013. Ports handle approximately 95% of India's
total trade in terms of volume and 70% in terms of value. Total volumes are expected to increase further as India

10. continues its economic expansion, with real GDP growth in India expected to average 7.3% and 8.0% per year for
the 5 and 10 years from the fiscal year 2014, respectively, making India one of the fastest growing economies in
the world.
Adani ports Mundra handled 101.12 MMT cargo making it the largest commercial port in India. It registered a
23% growth in the year FY14 compared to growth of 2% for cargo at all major ports. In case of containers, it
handled 2.39 million TEUs with 38% growth as compared to de-growth by 3% in container volume at all major
ports. Consolidated cargo for FY14 increased by 24% to 112.75 MMT vs 90.71 MMT in FY13. Mundra Port
crossed 100 MMT mark in FY14, the only Commercial port in India to achieve this milestone and holds No 1
position amongst all commercial ports in terms of cargo handling.
Special Economic Zone:
The Special Economic Zone Policy was framed in April, 2000 with an objective to increase the exports, attract
Foreign Direct Investment and to accelerate the economic growth of the country. the company's Multiproduct
SEZ of 6473 Ha. area at Mundra is the largest notified SEZ in the country. Exports from Mundra SEZ upto March,
2013 comes to about 7,357 Crores (cumulative). Mundra SEZ with its multi-modal connectivity including road,
rail, sea port and airport is expected to attract more and more investments in the coming years.
Further, based on approval from Government of India (GoI), the company has set up a Free Trade Warehousing
Zone (FTWZ) in an area of 168.41 Ha. at Mundra. The development activities in the FTWZ SEZ have been
initiated.
Disclaimer:
This document prepared by our research analysts does not constitute an offer or solicitation for the purchase or sale
of any financial instrument or as an official confirmation of any transaction. The information contained herein is
from publicly available data or other sources believed to be reliable but do not represent that it is accurate or
complete and it should not be relied on as such. Firstcall India Equity Advisors Pvt. Ltd. or any of it’s affiliates shall
not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. This document is provide for assistance only and is not intended to be and must
not alone be taken as the basis for an investment decision.

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