The state government of Kerala has announced the signing of a supplementary concession agreement with a major port operator, ensuring the future development of the Vizhinjam International Seaport. This project, envisioned as a transformative step in Kerala’s maritime infrastructure, aims to expand the port’s capacity significantly over the next decade.
Under the new agreement, the project timeline has been extended by five years, taking into account various challenges faced during the initial phase. The port’s second and third phases are now expected to be completed by 2028, with an additional investment of Rs 10,000 crore, expanding the port’s capacity to 30 lakh Twenty-foot Equivalent Units (TEU).
This milestone underscores the government’s commitment to the comprehensive development of Kerala’s maritime sector and its drive to enhance the state’s global connectivity. The revised agreement also ensures that the government will start receiving a share of the port’s revenue earlier than initially planned, providing a boost to the state’s financial prospects.
Share Price Movement
The share price of Adani Ports & Special Economic Zone Limited went up by 2.2 percent to Rs. 1,193.5 per share on Friday, an increase from its previous close of Rs. 1,167.6 per share. The market capitalisation now stands at approximately Rs. 2,53,027 crore as of November 29, 2024.
What Happened
Adani Ports shares rose 2.2% after signing a supplementary agreement with Kerala for the Vizhinjam port project, set to launch next month. Valued at ₹10,000 crore, the project aims to achieve a capacity of 30 lakh TEUs (twenty-foot equivalent units) by 2028. This development marks a significant milestone in strengthening Kerala’s maritime infrastructure, enhancing its role in India’s growing port and logistics network.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Adani Ports & Special Economic Zone’s consolidated revenue from operations has increased by 6.3 percent YOY from Rs. 6,646 crore in Q2 FY24 to Rs. 7,067 crore in Q2 FY25 and decreased by 6.5 percent QoQ from Rs. 7,560 crore in Q4 FY24.
The company’s consolidated net profit has increased by 36.9 percent, from Rs. 1,762 crore in Q2 FY24 to Rs. 2,413 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 22.3 percent QoQ from Rs. 3,107 crore.
Also read…..
Market Outlook
The Indian ports sector is experiencing robust demand, driven by strong growth in external trade. The government has approved plans to invest over US$ 9 billion in the construction of Vadhavan Port, which aims to become one of the world’s top 10 ports, enhancing trade capacity between India, the Middle East, and Europe.
Additionally, India plans to establish a new shipping company to expand its fleet by at least 1,000 ships in the next decade, targeting a reduction in freight costs and capturing more revenue from increasing trade. These initiatives demonstrate the government’s commitment to strengthening India’s maritime sector and enhancing its global competitiveness.
Shareholding Pattern
As of the November 2024 shareholding pattern, Adani Ports & Special Economic Zone Limited is primarily held by the promoters at 65.89 percent, foreign institutional investors hold 15.22 percent, and the public with 5.62 percent.
About Company
Adani Ports and Special Economic Zone Limited (APSEZ), established in 1998, is India’s largest private port operator and a key player in logistics. Headquartered in Ahmedabad, it handles nearly 24% of the country’s cargo traffic, contributing significantly to India’s trade and economic infrastructure. APSEZ operates 13 ports across seven states, including Mundra, India’s largest commercial port, and several specialised facilities for diverse cargo types.
The company offers integrated logistics solutions, encompassing cargo handling, transportation, and Special Economic Zone (SEZ) development. Its operations are bolstered by logistics parks in key states and cutting-edge initiatives like Smart Port technologies. In the fiscal year 2023-24, APSEZ achieved a remarkable 24% growth, managing 420 million metric tonnes of cargo.
With a focus on innovation and sustainability, APSEZ remains a cornerstone of India’s logistics sector. Its expansive network and strategic vision position it for continued growth in global trade and infrastructure development.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
