The CEO and Whole-Time Director of Adani Ports and Special Economic Zone, Karan Adani, has stated that the company is aiming to achieve an EBITDA (Earnings Before Interest, Depreciation, Tax, and Amortization) between Rs 14,500 to 15,000 crore for the financial year that is due to end this March.
Karan Adani added that in addition to an estimated capital expenditure of between Rs 4,000 to 4,500 crore, the company is also planning to repay and prepay a total of approximately Rs 5,000 crore in loans.
This move is expected to significantly improve their net debt-to-EBITDA ratio, bringing it closer to 2.5x by the end of the financial year in March. This statement was made following the release of the December quarter results.
Karan Adani further stated that due to the record high revenue and EBITDA over the past nine months, Adani Ports and Special Economic Zone (APSEZ) is in a strong position to reach the upper end of its full-year revenue and EBITDA guidance for the financial year ending in March 2023.
The head of the APSEZ company announced that the company has successfully completed its transactions with Haifa Port Company, IOTL, ICD Tumb, Ocean Sparkle, and Gangavaram Port. The company is making steady progress in its efforts to shift its business model to that of a transport utility.
According to a statement released by the company, the net debt-to-Ebitda ratio of APSEZ is within the specified guideline range of 3-3.5x, indicating a sound financial position. Furthermore, the gearing ratio of the company is less than one, demonstrating a low level of debt and a strong financial standing.
The individual stated that the company has exceeded expectations in regard to its performance across various debt covenants. They added that the company has a strong history of fulfilling its debt obligations and that the internal resources it generates allow it to meet its scheduled debt repayments without difficulty in any given financial year.