Tanishk_Ojha We are the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during Fiscal 2021 to Fiscal 2023, and the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2023. We operate nine Port Concessions in India with an installed cargo handling capacity of 158.43 MTPA as of June 30, 2023. We also operate two port terminals under O&M agreements for a cargo handling capability of 41 MTPA in the UAE as of June 30, 2023. Port traffic in India is expected to grow by 3% to 6% in Fiscal 2024, after growing by 8.2% in Fiscal 2023. Over Fiscals 2024 to 2028, growth at Indian ports is expected to be between 3% and 6%.
Tanishk_Ojha Major Dependence on Partner cos - esp JSW Steel - Although - reducing share as a % of sales.
Tanishk_Ojha We operate and manage our ports and port terminals under nine concession and license agreements, and lease deeds with state maritime boards and/or major port trusts/authorities in India (our “Port Concessions”), and under two O&M agreements in the UAE. These concessions are granted by the relevant government agencies and concessioning authorities. Through our Subsidiaries, we have entered into concession agreements for the development, operation, maintenance, and use of certain facilities for. managing the ports and terminals at Jaigarh, Paradip, Mangalore and Ennore, and have entered into lease and/ or license agreements for managing ports and terminals at Goa, Dharamtar and Ennore. A substantial portion of the total volume of cargo handled by us comprises coal and iron ore. Coal comprises of (i) thermal coal; and (ii) other than thermal coal (which includes coking coal, steam coal and others). Our Subsidiary, SWPL is currently the subject of a public interest litigation that is petitioning for closure of coal/ coke handling operations at the Mormugao Port in Goa due to the pollution caused by handling of coal/ coke at the port. While SWPL has filed a reply denying the contentions and objected to the admission of the public interest litigation, there can be no assurance that the High Court will accede to our submissions or will not pass any adverse order against SWPL, including imposition of a penalty, or issue any order to Goa State Pollution Control Board to take any actions or revoke our licenses. We had, in Fiscal 2021, failed to meet the specified debt to equity ratio under our facility agreement with IndusInd Bank Limited and while this was condoned through a specific credit approval by the lender on December 10, 2021, there can be no assurance that such waivers will be forthcoming in the future. National Green Tribunal has in the past directed our Company to increase our obligation towards corporate social responsibility to ₹500 million with the focus on improving welfare of the fishermen community, in response to appeals challenging grant of environmental clearance for the development of a captive jetty at Nandgaon, Thane, Maharashtra. We have entered into lease arrangements with JSW Steel and JSW Energy for certain land parcels at the Jaigarh Port (“Leased Land”) on which we intend to develop a terminal with a proposed capacity of up to 2 MTPA for handling LPG, propane, butane and similar products by utilizing a portion of our Net Proceeds. Our O&M agreement for the port terminal at Fujairah Sea Port (UAE) was entered into in Fiscal 2017 with a term of five years, further renewed for a period of five years to be valid until Fiscal 2027, and our O&M agreement for the Dibba Terminal (UAE) was entered into in Fiscal 2023 with a term of five years, which can be further extended upon mutual agreement. One of our Subsidiaries, Ennore Coal Terminal Private Limited (formerly Chettinad International Coal Terminal Private Limited) (“ECTPL”) is involved in a proceeding pending before the National Company Law Appellate Tribunal, New Delhi (“NCLAT”), wherein information was filed under Section 19(1)(a) of the Competition Act, 2002 before the CCI alleging abuse of dominant position under section 4 of the Competition Act. While CCI, through its order dated April 9, 2021, held that there was no dominant position of ECTPL in the relevant market and accordingly no abuse of dominant position, an appeal against such order is pending before the NCLAT.
Tanishk_Ojha Very low growth company - Better to invest in ADANI PORTS & SEZ if bullish on this sector. IPO - AVOID.
