Ladies and gentlemen, good day, and welcome to Adani Ports Q2 FY 2024 earnings conference call, hosted by InCred Equities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajashri Maitra from InCred Equities. Thank you, and over to you, sir.
Thank you, Yusuf. I welcome you all to the Q2 and first half of FY 2024 earnings conference call of Adani Ports and SEZ Limited. Today we have with us Mr. Karan Adani, CEO and whole time director, Mr. Subrat Tripathy, CEO of the ports business, Mr. Sushant Kumar Mishra, CEO, Adani Logistics, and Mr. D. Muthukumaran, CFO of Adani Ports, and Mr. Charanjit Singh, Head of Investor Relations and ESG. Without any delay, I would hand over the call to Mr. Charanjit Singh. Over to you, sir.
So, thank you, Rajashri. Good evening, everyone, and thanks for taking out the time for this call. Without any delay, I'll request Mr. Karan Adani to share his opening remarks, and thereafter, we will open the line for Q&A. So over to you, Karan bhai.
Thank you, CJ. Good evening, everyone, and welcome to half year FY 2024 conference call to discuss the operational, and financial performance of APSEZ. APSEZ delivered its strongest ever half-yearly result with record cargo volumes, revenue and EBITDA. The momentum has continued in October month as well, with APSEZ recording its lifetime high monthly volume of 37 million metric ton. Starting with financials, operating revenue for half year ended September 2023 was at INR 12,894 crores, which is a good 26% year-on-year growth. EBITDA, after factoring the Forex impact, is INR 7,429 crores, which is a good 49% year-on-year growth.
Given our focus on improving operational efficiency, port EBITDA margins in H1 expanded by 220 basis points year-on-year to reach 72%, while EBITDA margins of our logistics business stood at 29%, best amongst the domestic peer group. As you may recall, that at the beginning of FY 2024, APSEZ announced its intention to repay INR 5,000 crore loan, of loans. Thereafter, we launched our bond buyback program. The first tranche of $130 million bond buyback was completed in May, month of May, and the second tranche of $195 million dollar buyback was concluded in the month of October. As a result, our net debt, as of 30 September, declined to INR 38,696 crore, versus net debt of INR 39,989 crore on 31 March 2023.
Consequently, our net debt to EBITDA ratio has improved to 2.8 times from 3.1 times as of March 2023. I would also like to share an update on our port in Sri Lanka. The port has now received a funding commitment of $553 million from US International Development Finance Corporation. Moving to operational highlights, starting with ports business. APSEZ recorded a healthy 14% year-on-year increase in cargo handling volume at 203 million metric tons. The growth was reported across all three major cargo categories, with dry bulk registering a 10% year-on-year growth, liquids 21% year-on-year, and containers 18% year-on-year. Eight of our ports recorded their highest ever half-yearly volume during H1. Mundra, our flagship port, recorded 3.6 million TEUs, which is 15% higher than its closest competition.
In October, Mundra achieved another milestone by recording 16 million metric ton of cargo volume, which is the highest ever monthly cargo volume handled by any port in India. Our Haifa Port in Israel did around 6.3 million metric ton of cargo in H1, and has handled around 1.1 million metric ton of cargo in the month of October. Moving to operational performance of logistics business. During the period under review, we commissioned the Loni ICD, taking the total count of MMLPs to 10. We have added warehouses at Indore and Mumbai, thereby taking the total warehousing capacity to 2.4 million sq ft. We have also added 11 rigs to our existing fleet, thereby taking the total count of rigs to 104 as of September end. While we added assets to our logistics portfolio, we also improved the utilization of existing assets.
As a result, our rail volumes increased by 25% year-on-year to 279,177 TEUs, while our GPWIS volumes, that is the bulk volumes, increased by 42% year-on-year to 8.92 million metric tons. Finally, on FY 2024 guidance, with a record cargo volume of 240 million metric tons during the initial seven months of FY 2024, APSEZ is well positioned to achieve its full year revenue, EBITDA guidance on the higher end. We can now open the forum for Q&A.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Abhiram Iyer from Deutsche Bank. Please proceed.
Hi, congrats on a good set of numbers, and thanks for taking my question. So my first question was to do with the Colombo Port, as well as the West Bengal Greenfield project. What's the timeline for these? How are you sort of putting in CapEx for these going forward in FY 2024, sorry, FY 2025 and FY 2026? And the second question was primarily on the guidance. Again, I believe you already may have addressed this last time around, but any particular reason why the guidance still remains the same despite sort of outperformance at the half-yearly mark? Are we expecting a slowdown into the second half, or this is more of the company being prudent and cautious in their outlook?
Sure. So on the Colombo Port, we expect commissioning and operationalizing of phase one by December of 2024. We have already given our, the CapEx is already included in our CapEx guidance, so it does not, there's no top-up on that. As you know, in Colombo Port, we have a JV partner as well, where we have 51%, 49% are other two partners, SLPA and John Keells. So, they bring in their respective equity into that project as well. On West Bengal Tajpur Port, we are still waiting for a letter of award, LOA. We have received the letter of intent. We are waiting for LOA to come.
Once we get, it will be 18-24 months before we start any construction over there, since we have to go through the EC environment clearance as well as ground groundwork over there. On guidance, as I said, we, we have given the guidance at the start of the year. We maintained that we would be looking at the higher end of our guidance, in terms of what we will achieve.
Thank you for the clarifications. Just on follow-up on the first part, you mentioned that, again, this is, this is a JV with your equity partner who will be putting in equity as well. So broadly, from the company's perspective, given this, you know, funding of around $550 million available, and I believe the total cost you mentioned would have—was $750 million. So roughly $100 million outflow from the company's perspective, right? Which as is already included in the CapEx.
That's it.
All right. Thanks, I'll get back in the queue.
Thank you. Next question is from the line of Imtiaz Saifuddin from Barclays. Please go ahead.
Thank you. And congrats on the excellent performance in the first half. I have a couple of questions. The first one, would you be able to provide an update on your Haifa operations, post the closure of your second quarter numbers, and any impact, from the ongoing tensions in the Middle East, or any changes to your guidance?
Sure. So, as you know that, the conflict is on the southern part of Israel, and Haifa Port is on the northern part of the country. Right now, we have not seen any slowdown in the traffic. Incidentally, we have done, as I said, in month of October, we have done 1.1 million metric ton, which is what we have been doing in the last six months as well. So roughly 1 million ton, 1 million ton per month. We are seeing actually an increase in traffic in Haifa because the second-largest port, Ashdod Port, has been closed for commercial operations since the conflict.
So we are seeing a lot of diversion of traffic happening into Haifa Port, and we will continue to see similar strong volumes in the coming months as well. Our teams have prepared, you know, well on the ground in order to handle the extra volume. So whether it's the backup area as well as the extra storage, whatever is needed. So on that front, we are on target.
Great. Thank you. Secondly, my second question is on the Myanmar project. You revised down the sales price from $260 million to $30 million in May and took a $155 million impairment loss. Can you just provide some color on this transaction and why the big revision?
Yeah, hi, this is Muthukumaran. The reason why actually we sold the asset at that point in time is because we've been pursuing an opportunity to, you know, either commission the project or actually sell it as soon as possible. So we haven't been able to complete the project, so we had to sell the project on an as-is basis. And as we have mentioned in the press release at the time of transaction, you know, we had to identify a party who will buy it with all the attendant risk to complete the transaction and construction, and as well as actually wait for the business environment to turn normal in Myanmar. So considering these two weren't there, we had to actually do a transaction at a price that we have done.
You know, we had actually a signed term sheet and a transaction with a party prior to we actually selling at this time. And we actually couldn't complete the earlier transaction because we couldn't complete the CPs, which is around construction of the project, as well as approval from the concerned government to sell.
Understood. Okay. If I can just throw in a quick third question, on your CapEx. In the first half, I believe the total was something like INR 38 billion. That's more than half of your INR 45 billion rupee guidance for full year FY 2024. Any revision in your full year guidance then?
See, it relates to the very first question that came up in the call. You know, this INR 3,800 is a gross, which includes the, you know, the capital expenditure for Sri Lanka. Our INR 4,500 was only the equity contribution. That is one part.
Mm-hmm.
As far as the second part is concerned, our CapEx is configured such that we will end the year with what we promised as a primary target of leverage at around 2.5 times, and we will also have a cash balance of INR 8,000 crore. Those numbers haven't changed, so we continue to shoot for that.
Okay. Thank you very much.
Thank you. Next question is from the line of Asmeeta Sidhu from MetLife Investment Management. Please go ahead.
Hi, thank you very much for taking my question. I just have a follow-up question on the earlier mentioned funding by DFC. So could I just have any clarification on how this funding will be provided to the Colombo JV? Will it be sort of a direct cash infusion, or will there be sort of other funding sources that will be given to the JV that the company may know of at this time?
So, this is a project funding, direct cash into the JV, and it's a 20-year loan what we are taking.
All right, and thank you very much. Then just a final question from me. Just with regards to the new tax regime that I believe was mentioned, taken up for one of the subsidiaries. Could you share with us a little bit more on what this tax regime is, and why the subsidiary has decided to change the regime to this one?
Hey, hi. Actually, this is basically the choice that we have of continuing with 35% tax in that company versus moving to 25%, which is a lower tax. Now, you know, in case if we move to 25%, the cost for that move would be the existing MAT credit that we have already paid in the past is no longer going to be available in future. So we had to continuously do the math, and find out the break-even point. And, considering that, you know, the company is doing far more than what we have estimated in the past, we have reached a point where it is better to move to a lower regime of 25% in future, although we will lose the INR 455 crore net MAT credit that we have paid in the past.
So it's just a pure math based on forecast of the company, and the company is actually doing far better, and therefore it's you know, making commercial sense for us to move to a lower tax. And the other point of note is actually this INR 455 crore is going to have zero impact on cash. It's a non-cash item. It's an accounting write-off of past MAT that has been paid. So this INR 455 crore is an accounting you know, impact. And we will continue to enjoy 25% for lifetime lower tax going forward. So actually the cash will be more.
Understood. Thank you very much.
Thank you. Before we move to the next question, a reminder to the participant, anyone who wishes to ask a question, may press star and one. Next question is from the line of Priyankar Biswas from BNP Paribas. Please proceed.
Thank you for the opportunity. Hi, hi there, Karan. So my first question is regarding Adani Ports international strategy. So what I see is, like, based on media articles as well, that probably a port in Vietnam is also being considered. And then earlier, I think there was some agreement signed with Abu Dhabi Ports as well, and then we already have Haifa. So what exactly is the international strategy that APSEZ is following? That's the first question. And second, given that post the G20, IMEC has also been announced, so would that change Haifa's potential than what you had said probably during the acquisition of Haifa itself? So any upside potential from that? So those are my questions.
Yeah, sure. Thank you. So on international strategy, as we've always been telling that, we are looking for high growth countries, where we would be looking at brownfield expansion or taking over an existing asset through government privatization. And also second is we are looking at all these international forays will be through partnerships and through local partnerships. So I think that stance continues. As you can see, based on these criteria, and also keeping this in mind, we are always looking for countries where we can make India as a centerpiece of sort of a hub and create better trade lanes, you know, overall trade lanes.
So that strategy continues. We keep evaluating, you know, opportunities as and when come. As of right now, we don't have anything further to add. As I said, that, we keep looking at countries, high growth countries like Vietnam, Bangladesh, Eastern Africa, as well as certain parts of Middle East. So we keep looking at that and to see if we can create a, if we, if there's an opportunity over there. In terms of your second question, IMEC, it's definitely... it's definitely a very strategic move.
It will not only help Haifa, but I think it will also help Indian ports, because in essence, it sort of cuts across Suez Canal, and if done correctly, it will help reduce the transit time as well as the cost of cargo from moving through this thing. I think it's a long-run project, which is multi-country where there are a lot of multi-country coordination that needs to happen. But yes, as and when it does get happen, it will be a game changer.
So just harping on that. So when you had done the Haifa acquisition sometime back, so-
Yes.
I don't think your numbers were building anything of this sort, right? Like a potential-
No. We've not done any of this in Haifa, no.
Okay. Karan, just one more question. Nowadays, in India, we are seeing a lot of coastal movement on coal. And especially it seems that one of your recently listed peers is also focusing on that. Given that the competition is increasing on those aspects, especially on the eastern ports, can you just throw some light on the competitive dynamics that is at play right now, especially at least on the coal?
Yes, I'll request Subrat to answer that.
Hi, good evening. So as you correctly said, so the, what is popularly called the RSR route, the rail cum, sea cum, rail route, in which you would be aware that we have made inroads into procuring tangible volumes from the MCL, which is Mahanadi Coalfields present at Ib Valley coalfield, as well as Talcher coalfield. And as I see the uptick of volumes that we have had in this, you know, in the seven months, we've had an additional volume at Gangavaram of about close to 2.5 million metric tons. At Krishnapatnam, which is a receiving port, for the powerhouses which are situated alongside the port, we've seen an upside of about 1.5 million metric tons, and at Dhamra, to the extent of about 0.5 million metric tons. So we are...
We are also seeing that, in coal, on the RSR route, as a part of the government's intent, of the interministerial group, to see that coal from eastern India goes by the all sea and rail route to western powerhouses and southern powerhouses. We've also been able to provide coal to Kudgi Power Plant of NTPC through our port, our terminal in Mormugao. So as we speak, all these ports on the eastern side, namely Gangavaram and Dhamra, and at the receiving end, Krishnapatnam, and at Mormugao terminal, are coming into this play as well. As far as the competitive edge is concerned, so there are ports on which we compete. It's namely Paradip Port.
While Paradip Port volumes are steady, we are also into the play as far as Talcher to Dhamra is concerned, and Ib Valley to Gangavaram, where the larger volumes come to Gangavaram Port. Thank you.
Okay, thanks, Raj. Just one more question. Can you just give me what is the, currently on a broad-based portfolio basis, what would be your broad, import to export mix?
Of the ports at large?
Yes. So of the ports at large, specifically containers, let's say.
Oh, you're asking, what is the import, export of container?
Yes, yes, yes.
Right. Just one second. So it is 60/40. 60% export, 40%-
60, sorry, 60 import.
Sorry, 60% import, 40% export.
Okay. Thanks, Raj. That's all from my side.
Thank you. Next question is from the line of Nikhil from AllianceBernstein. Please go ahead.
Thanks for the opportunity. My first question is on the Haifa Port. Wanted to understand, what is the primary currency of the revenue or the tariffs at the Haifa Port? Is it the local currency, which has been volatile, or is it in U.S. dollars, lastly?
It is local currency, NIS.
... Understood. So no hedging would have been done, on that front. Am I correct, Aruna?
We have hedged all exposures that we have at APSEZ level in the near term, which is, you know, up to three years. So those are hedged. But the long-term revenue is actually, you know, as you said, is in NIS, which is a local currency.
Understood.
That's also the reason for it is because NIS versus dollar is very stable. If you look to the last 10 years of exchange rate, you will find that has been closer to 3.5 consistently. So there is no specific depreciation or appreciation what we have seen.
Understood. Got it. I think the second question I had was then on the Visakhapatnam Port. Good to see progress on the port, but would be helpful if we could get clarity on when does the scalable commercial operations start, at that port?
So we expect all the equipment to be at berth by March of 2024. As you know, it's a semi-automated terminal. It will take us 3-4 months to get all the cranes and equipment commissioned. So we would look at basically second half of FY 2025 to commission to start full-fledged operation.
Got it. Understood. Thank you. The third question I had were a bit on the quarter. So the quarter volumes, I could see the port revenue was up lower than the volume growth in the port business, despite that currency being, dollar being the same this quarter, nearly the same to last quarter. So was it cargo mix difference or what was the reason for that...?
Mainly it is a cargo mix difference.
Understood. Got it. Then my last question was one balance sheet item, which is other financial assets, which were up almost INR 2,000 crore, if I'm not wrong, from March to September. If what exactly is that, if that could be clarified, that will be helpful.
It's a combination of short-term investments that we make, as well as actually advances that we have paid against future CapEx and acquisitions.
Got it. Understood. Thank you so much. That, that's all from my side.
Thank you. Before we move to the next question, a reminder to the participant: anyone who wishes to ask a question may press star then one. Next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yeah. Thanks for the opportunity, sir. My first question is on the slide number 41, where you're talking about the joint ventures, you know, profitability. My question is, if I look at Q2 FY 2024 PAT contribution with JV, which has improved materially, it has come for AICTPL is INR 151 crore, ACMTPL is INR 59 crore, and IOAVL JV is INR 59 crore. But when I look at your P&L, the joint venture associate income is merely INR 45 crore in this quarter. Am I missing something?
I'll answer. I think, you know, page number, I'm not sure whether you're talking about 41. Are you talking about 36? But I think the answer-
Thirty-five.
The answer is simple. Yeah, the answer is simple. Actually, there is another company, which is Dhamra LNG, that has now been consolidated in this quarter. And being, you know, sort of in a ramp-up stage, there is a loss coming from Dhamra. When it catches up, when the ramp-up is sort of complete, you will see that consolidated number going up.
It's because of Dhamra LNG. Understood, sir. My second question is: how much rates on the logistics side, how much rates you are looking to add in FY 2024 and FY 2025?
Just one second. End of this calendar financial year, we would be at 128, from 100 and-
Addition is 40.
Addition is 40. No, not 40.
We're 110 as of now.
No, no.
104 now.
We're talking about full year. 40 is full year.
Okay. Yeah. 40 for the full year as well.
40 for the additional, right?
No, no, not 40 addition. Sorry, just give me one... So right now we are 104 as of half year. By end of this financial year, we would be at 128.
128.
And-
For FY 25, we can expect a similar number? Yeah.
Sorry?
For the FY 25, if there any number you can share?
Three rates
As of right now, it's only another 3, 3 to 4 rates, which will be coming in.
Understood, sir. My last question is, have you heard anything from the government on the renewal of concession? Do you think this policy will get decided in a fiscal year, this fiscal year, or do you think it's, it is postponed for the, for the FY 25?
We are hopeful that, we would be able to finish it by end of this, financial year.
Understood, sir. Thank you and all the best, sir. Thank you.
Thank you. Next question is from the line of Aditya Mongia from Kotak Securities. Please go ahead.
Good evening, everyone, and thanks for the opportunity. The first question that I had was on the recent addition of the Loni ICD. I wanted to check whether this falls under the hinterland of Concor's Dadri ICD, which has recently gotten doubled its stack on the DFC. Wanted to check if what's the strategy of kind of aggregating volumes given the supremacy of Dadri in the hinterland?
You know, this, I'm Sushant Mishra. You know, the Dadri Concor, a part of the catchment also will come to this ICD Loni. And a part of, you know, Haryana, the Sonipat region, also come onto this. So, you know, this, there is a natural hinterland to Loni, which was being served earlier. So now that we are recommencing the operations, we'll have a natural advantage in that, that, and we have a marketing strategy to via first and last mile connectivity to enhance that.
Are there any minimum volumes that you have to do in the first year of operations?
Yeah, we do. We have agreed with CWC to do some minimum volumes. So where, you know, as you know, when you restart an operation, there are issues like a BL point with the shipping lines. We are all working with that, but we will catch up on the volumes.
Understood. The second question that I had was more of a confusion. In the cash flow statement, I do see some inflows coming in because of, probably reduction in security deposits. And I was assuming that, whatever has been the support given for future CapEx is actually coming down. However, in an explanation to the increase in other financial aspects, it was said that, the advances have been given for future CapEx. So could you clarify, on a six-monthly basis, has money come in or more money gone out, and what's the current, outstanding?
Yeah. So let me just clarify. The addition of advances on the acquisition front, it is not on CapEx. It is not an increase. On the advances of CapEx, that has come down drastically.
Actually, these acquisitions are already completed as we speak, so we will actually, you know, include it in the... When you see the next year, next quarter's number, all these would have actually gone off from advances.
Understood. Could you give us probably an update, maybe you would have shared this earlier, what is the guidance for the full year CapEx for this year on a consolidated basis?
So, like I said, instead of the specific number, what we are targeting is to end the year with a leverage of around 2.5 times that we guided, as well as the cash balance of INR 8,000 crore. So these two, you know, remain unchanged as a target.
Understood. Again, just an observation, and probably simplify for all of us. There have not been any meaningful inflows or outflows in the cash flow statement in form of ICDs. Should one assume this to be the trend going forward as well?
Sorry, in the form of ICD, should we assume therefore?
That there will be no meaningful money in the form of ICDs going in and out as part of the cash flow statement, the way this has happened this first half this year.
That's correct. The answer is yes. There are no ICD, either deployment or realization, because actually, you know, there is zero balance as of today. So there is going to be no realization in future, and we, we don't plan to deploy anything in ICD. And there was no deployment in the last six months either.
Extremely clear. Those are my questions, and thanks a lot for your response.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star and one. Next question is from the line of Bharanidhar Vijayakumar from Spark Capital. Please go ahead.
Yeah. Good evening, gentlemen. My question is on your outlook for, say, calendar year 2024 on key cargo categories. How do you expect them to perform, especially in the light of general perception that container volumes are likely to be subdued, given challenges in the global trade and probably even slowdown in India? And also the fact that sequentially this quarter, compared to last quarter, the volumes have been almost flat. So that's my first question.
So I think if you see our October volumes, we are having even month-on-month growth. Right now, we are not seeing a slowdown. Right now, we are not seeing much of slowdown into our cargo, and we expect to continue to do a similar run rate of the average run rate that we have been doing so far in the last seven months.
We did 6.7 in October last year in terms of TEUs, and this year we are doing about 800,000 TEUs. So you can see there's an uptick at the container business. And you see that our market share in containers has significantly grown up. While there's a general perception that you're having, but we aren't seeing any kind of you know downstream over there. All the you know both at Mundra and the southern ports, we are seeing an uptick. And as well as new services added at Hazira, which is also doing an all-time high.
Okay. But, wouldn't the growth from last year to this year mostly be due to low base? Because last year we saw a degrowth in, I don't know about October, but second quarter at least, there was a degrowth, if I'm not wrong.
No such signs are visible at the moment. Even this month, we've seen the volumes and the nominations are quite healthy. So we are seeing that it will continue to rally, and we've also guided in the past that new services are being added at Katupalli.
... and new services at Hazira as well. We continue to be quite robust on the growth itself.
So, Maarinder, last year, because of the economic situation, right, it's April, May time when the slowdown started, and the slowdown almost peaked up around July, August sort of time frame. So as a result, H2 was relatively lower, from an overall volume and cargo perspective and container perspective, primarily. But this year, if you look at our record, consistently, month-on-month, our performance versus India average, and also on YOY basis, you see a significant jump. Talking of October, what, as we mentioned, the numbers reflected 20% jump. And a similar sort of trend, what we have observed also in the last six months sort of time frame.
Okay, fair enough, sir. My second question is on the recent news article regarding the US government funding port in Sri Lanka, where they'll be giving capital. So, anything that you could highlight regarding this? Will it be part of CapEx going forward?
Yeah. See, basically, it's a project funding by DFC, okay? And, we have gone through the full study by them, and we have made ourselves eligible. So I guess, that demonstrates that, you know, we are ready to absorb all kinds of, funding, which comes with the highest level of, scrutiny and KYC. And basically, you know, it, it is a $550 million total facility out of the total $750 million project financing. And that $550 million will come into the company as, project finance, and it will be repayable over 20 years.
The cash out to from our side is primarily the 50% of the equity share.
Okay. So is this the same Colombo project?
Yes.
or is this a new terminal?
No, it's the same.
Okay. Okay. Okay, thank you for answering my question. On, all the best. Thank you.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Next question is from the line of Alok Deora from Motilal Oswal. Please go ahead.
Good evening, sir, and congratulations on good numbers. Sir, just had a couple of questions. One is, what's the outlook on volume growth for FY 25? Because like this year, we are still maintaining the guidance of around, you know, 390-400 million tons. So what's, what number we could be expecting for next year based on the current ports, you know, which we are having?
See, I think it. I will not do justice by giving you guidance for next year, but I can only assure you that our guidance of 500 million ton by FY 2025, we are on track of achieving that, that part of the guidance.
Sorry.
You need to look at our financial performance, right? So there were three numbers which were given: the volume, the revenue, and EBITDA for FY 25. So you need to look at all the three numbers and see where do we stand, particularly the revenue and EBITDA, because cargo is our input in terms of deriving those numbers. And what we have seen in the past, because the guidance was given four,five years back, when the five-year plan was prepared. So you could see that we are on track in terms of achieving what we have mentioned, if you look through the numbers details.
Got it. Got it. And, also on the logistics business, how we are seeing that, shaping up, at the ground level? And, whether we have been, we have already seen the integration with the ports business, which we had mentioned around some time back, that we are looking to, you know, be, integrated with the ports business and become a, you know, one-stop solution for the clients. So that has already played out in a big way, or it's kind of, still a long way to go, with that?
Well, we are very much on that journey. You know, you, as you know, with the number of rigs that we're adding, almost, you know, 35 rigs that we'll be adding to our stable this year. And also the terminals, you know, we have already 10 terminals. And, you know, this is a function of, the rolling stock as well as terminals and integrated solution to the customers. So we have internal synergy within our port, container team and our, Adani Logistics. And as well as, you know, the warehousing. All this together, we are providing integrated solution to customers, and that is very much on the cards.
Got it, sir. That's-
And-
Yeah, please.
This is on the container space, and with GPWIS, we are then also de-risking, you know, the our major customers from the major ports. So that, you know, that is providing a lot of stability to their, you know, volumes in terms of evacuation of imported cargo, and also, to some extent, bringing export cargo to the ports.
Got it, sir. That's all from my side. Thank you, and all the best.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star and one. Next question is from the line of Sharon Chen from Bloomberg Intelligence. Please go ahead.
... Hi, thanks for hosting this call, and congrats on a good set of results. Just a couple of quick questions. The first one is just to confirm, you know, the loan that you got from DFC, that's presumably non-recourse to Adani Ports. And the second question is just on your medium-term financial policy. So I know you target 2.5 times net debt to EBITDA by next March, but thereafter, will debt still remain the target, especially considering, I think, you know, you've demonstrated good access to funding, and clearly there's a lot of growth opportunities out there. Thank you.
So, on the first question, yes, it is non-recourse. The loan is a non-recourse to, to APSEZ. Sorry, can you repeat your second question?
I just want to clarify your medium-term financial policy, whether you're planning to stick with, you know, the 2.5 times net debt to EBITDA, going forward.
Yeah. So I think, right, as looking at our cash flow, our growth, right now, we are comfortable at 2.5. We will, and we would stick to it. I think there would be looking at the opportunities available. If there is on growth perspective, we have to take a little bit of bump, for a quarter or two, we will be happy to take that. But, on a medium term, on a long-term basis, 2.5 is what we are looking at right now.
Okay. Thank you.
Thank you. Next follow-up question is from the line of Aditya Mongia from Kotak Securities. Please proceed.
Thank you for the opportunity. I only had one more question, and this link to the opportunity to add more assets to the Adani portfolio. Now, we can see in this year, Haifa and Karaikal are boosting overall growth quite meaningfully. Could we expect the next few years to also have an inorganic component of, let's say, 45% of growth? Or do you think it will be more organic in nature?
See, even in the current year, actually, our organic growth is quite substantial. Volume, it is 8%, and the revenue, it is close to 12%. And inorganic growth, of course, we will keep an eye, and if there is an opportunity, we will be at it. Our own expansion plans for, you know, many of the ports are also, coming up, so brownfield expansions also contribute. So our growth will have all three components.
Understood. Essentially, I also wanted to kind of understand, at least one of your peers is suggesting meaningful opportunities from port privatization. Do you envisage that to play out, and thus, there being an inorganic component to growth, which is sizable? Or do you still think that the other two components will be what something that will be driving your growth prospects much more?
So we will. Sorry.
So, I would say from government privatization, if you look at our, I mean, if we look at our past record, we are not very bullish on from a return perspective. That said, if there are one or two strategic locations where we are missing, whether on container or on liquid, if we get a position, we would be looking at it. But our predominant focus would be expanding our footprint and, I mean, our footprint of our existing ports and diversifying that, you know, the cargo base in our existing ports, because we have an ample space and opportunity to grow over there.
And the good part is the incremental capacity that we will be adding will be, you know, 30%-40% of the cost of a greenfield CapEx. So, yeah, predominantly for us, our growth will come from expanding our existing facility and diversifying our existing facility.
And maybe again, a related question. See, Maharashtra is one geography that, you have recently entered through the Dighi Port. And how has been your experience so far? Has it been encouraging, and do you think that you can gain a meaningful market share in, Dighi over time? Or do you believe you may need to add more asset, maybe a Greenfield one, to become more relevant in Maharashtra? That will be the final question on my side.
Yeah, no. So Dighi is a long-term project. You know, our strategic intent does not change. We do believe that it will, it can be a good... It will be a good gateway, alternate gateway to JNPT. And we are building the port out. You know, we are building the railway line out over there. We are building the, you know, an industrial park right behind the port, as well as improving the road connectivity. And we are diversifying, and we have also started our liquid operations over there. So once I think, it will take time to stabilize.
In our view, it will take, it is, though it is a brownfield project, it is as good as a greenfield project, so it will take 4-5 years for Dighi to come up to a little bit of scale. I think, but on a longer term, when we look at 10, 15, 20 years down the line, we do believe, we strongly believe that Dighi will be a great alternative to JNPT.
Great. Those were my questions. Thank you.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. As there are no further questions from the participants, I'd now like to hand the conference over to the management for the closing comments.
Thank you everyone for taking out the time, and wishing you all a very happy Diwali. Looking forward to another fruitful interaction in the month of January with our Q3 numbers. Thank you and good day.
Thank you. On behalf of InCred Equities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.