The stock price of Adani Ports and Special Economic Zone (APSEZ), an entity under the Gautam Adani-led group, experienced a significant decline of over 5 percent on NSE (National Stock Exchange) amid certain events affecting the region. APSEZ operates the Haifa port in Israel and has emphasized its vigilance in ensuring business continuity despite the challenges faced.
- APSEZ stocks witnessed a sharp decline, falling by 4.89 percent on the BSE (Bombay Stock Exchange) and 5.09 percent on the NSE.
- On the BSE, the stocks closed at Rs 789.90, and on NSE, they closed at Rs 788.5.
Business Continuity Assurance
Monitoring and Preparedness:
APSEZ stated that it is actively monitoring the situation, particularly in South Israel, where the events are concentrated.
The company is ensuring the safety of its employees and confirmed that all staff members are secure.
Haifa Port Operational:
Despite the challenges, the Haifa port, situated in the northern part of Israel and operated by APSEZ, remains operational.
The company has taken measures to guarantee the smooth functioning of its operations.
Business Continuity Plan:
APSEZ emphasized its preparedness, stating that it has a robust business continuity plan in place.
This plan is designed to enable the company to respond effectively to any unforeseen events and challenges that may arise.
Financial Impact and Confidence:
Limited Impact on Cargo Volume:
The Haifa port’s contribution to APSEZ’s overall cargo volume is relatively small, accounting for only 3 percent of the total cargo volume.
The firm highlighted that, for the current financial year (April 2023 to March 2024), Haifa Cargo volumes were guided to be within the range of 10-12 MMT (Million Metric Tons), out of APSEZ’s total cargo volume guidance of 370-390 MMT.
Confidence in Business Performance:
- APSEZ expressed confidence in its business performance, citing that in the initial six months of the financial year (April-September 2023), APSEZ’s total cargo volume stood at approximately 203 MMT.
- Within this, the Haifa port contributed around 6 MMT. Despite challenges, the company remains optimistic about its future performance.