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Informist, Thursday, Aug 1, 2024

--Food FMCG ops to be demerged from Adani Ent, merged into Adani Wilmar

--Adani Enterprises Apr-Jun consol sales 254.72 bln rupee vs 226.44 bln

--Adani Enterprises Apr-Jun consol PAT 14.55 bln rupees vs 6.74 bln

--Adani Enterprises Apr-Jun consol net profit 14.55 bln rupees

By Sunil Raghu

AHMEDABAD – Adani Enterprises Ltd's consolidated net profit for the June quarter jumped to 14.55 bln rupees, up 115.8% on year, as all of its business, except integrated resource mining, recorded a good earnings performance on year.

After the results, shares of Adani Enterprises rose to the day's high of 3,258 rupees on the National Stock Exchange, from 3,205.60 rupees just before the announcement of the earnings at 1449 IST. The stock ended up 1.5% at 3,217.25 rupees.

Adani Enterprises, the flagship company of the Adani Group, has business interests in coal management, mining, new energy, roads, and airports. Its revenue from operations for the June quarter rose 12.5% to 254.72 bln rupees.

For the June quarter, the company's total expenses, including finance costs, were at 238.31 bln rupees, 8.6% higher. The finance cost was up by a marginal 2.5% on year at 11.3 bln rupees. The company reported a tax outgo of 5.84 bln rupees for the quarter, against 3.61 bln rupees a year ago.

The cost of raw materials consumed fell 12.1% on year to 17.6 bln rupees, from 20.02 bln rupees in Apr-Jun last year.

The company reported a revenue of 107.93 bln rupees from integrated resource management, and 8.60 bln rupees from mining. Its revenue from commercial mining for the quarter was 16.40 bln rupees. The revenue from the new energy ecosystem came in at 44.57 bln rupees, from the airports business at 21.54 bln rupees, and from the roads segment at 25.51 bln rupees. The revenue from other business stood at 89.16 bln rupees.

The company said that its earnings before interest, taxation, depreciation and amortisation have increased 48% on year to 43 bln rupees. Its emerging core infrastructure business, comprising ANIL ecosystem, airports and roads now contribute 62% of EBITDA, compared to 45% in Apr-Jun of last year. The ANIL Ecosystem solar manufacturing and wind turbine business recorded EBITDA of 16.42 bln rupees, a 3.6-time jump on year. It now contributes to 38% of total Ebitda.

The company's other income for Apr-Jun was at 5.94 bln rupees, up 60% on year.

OPERATIONAL UPDATES

For Apr-Jun, the company saw a 125% on-year jump in sales of solar modules by its subsidiary Adani New Industries Ltd to 1,379 MW, against 614 MW a year ago. The company said that exports rose 109% to 808 MW and domestic sales by 151%. The company also successfully operated at full capacity of large-sized monocrystalline ingot and wafer unit of 4 GW capacity at Mundra during the June quarter.

Another subsidiary, Adani Airports Holdings Ltd handled 22.8 mln passengers, 152,100 air traffic movements, and 270,000 tn of cargo in the reporting quarter. In the same period in 2023, it handled 21.3 mln passengers, 141,600 air traffic movements, and 230,000 tn of cargo. The company said it added 25 new brands at Lucknow airport during June quarter.

A third subsidiary--Adani Road Transport Ltd-–completed 730 km of road projects in Apr-Jun, an eight-fold jump over the 79.8 km it completed in the same period last year. Three of the 10 under construction projects are more than 80% complete.

Dispatches from mines owned by Adani Enterprises rose 47% on year to 9.3 mln tn from 6.4 mln tn a year ago.

The volume of the company's integrated resources mining business in Apr-Jun fell 13% on year to 15.4 mln tn, from 17.8 mln tn, helped by a correction in coal prices.

FOOD BUSINESS

Today, Adani Enterprises board also approved the demerger of food business to Adani Wilmar Ltd, along with its strategic investment in Adani Commodities LLP on a going concern basis. The demerged entity would be merged into Adani Wilmar Ltd.

Sharing the rationale, Adani Enterprises said that the food FMCG business had become self-sustained, performing well and poised for further growth under Adani Wilmar. For Adani Enterprises, this will unlock value for shareholders and allow a focused strategy for sustained growth in its incubating business. The turnover of the demerged undertaking as on Mar 31 was zero, the company said.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Aditya Sakorkar

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