APSEZ Achieves AAA Ratings: Pioneering India's Private Infrastructure

APSEZ's integrated approach, seamlessly integrating ports with SEZ and logistics assets, reinforces its leadership in India's infrastructure sector.

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Apsez

In a historic feat for both Adani Ports & SEZ (APSEZ) and India's private infrastructure landscape, the company has clinched AAA ratings from Care Ratings. This accolade, the highest honor bestowed by credit-rating agencies, underscores APSEZ's robust creditworthiness and its steadfast ability to meet financial obligations. Notably, this recognition marks a significant milestone as APSEZ emerges as the inaugural private infrastructure developer of its scale to achieve such distinction in India.

Resilient Business Model and Growth Trajectory

The AAA rating is a testament to APSEZ's resilient business model, marked by impressive operational growth and commendable profitability. It mirrors the company's fortified liquidity position and judicious leverage management. Factors contributing to this esteemed rating include the healthy expansion of operations, consistent PBILDT margins, and APSEZ's adept execution in the port sector. Notably, the company's improving leverage ratio, declining from 3.62 times in March 2021 to 2.41 times by December 2023, underscores its commitment to financial prudence.

Strategic Vision and Operational Excellence

APSEZ's success transcends financial metrics, highlighting its operational excellence and strategic foresight. With a proven track record of revitalizing port assets post-acquisition, APSEZ leverages its integrated business model, encompassing ports and logistics infrastructure. This approach has propelled APSEZ to outperform with a remarkable 15% compounded annual growth rate for FY19-FY24, surpassing the 4% CAGR recorded by all Indian ports collectively.

Geographical Expansion and Diversification

Noteworthy is APSEZ's geographical expansion and portfolio diversification. From operating two ports in 2011, the company has burgeoned to manage 14 ports across India's coastline. This strategic expansion has amplified APSEZ's reach, operational efficiencies, and service offerings, solidifying its position as a pivotal facilitator of India's trade and economic development.

Integrated Approach: Ports, SEZ, and Logistics

Moreover, APSEZ's integrated approach, seamlessly integrating ports with SEZ and logistics assets, reinforces its leadership in India's infrastructure sector. The strategic locations of its ports, such as Mundra, Dhamra, and Krishnapatnam, further augment the company's growth trajectory and contribute to its resilience.

APSEZ's attainment of AAA ratings marks a watershed moment for India's private infrastructure landscape, showcasing the company's excellence in governance, operational efficiency, and financial stewardship. As APSEZ continues its trajectory of growth and innovation, its success serves as a guiding light for the broader infrastructure arena, heralding the potential for private entities to drive sustainable development and catalyze India's economic resurgence.