Adani Enterprises Q1 Results: Net profit zooms 116% to ₹1,454 crore, revenue up 13% YoY; FMCG biz demerger approved

Adani Enterprises Q1 Results: Adani Enterprises announced its April-June quarter results for fiscal 2024-25 (Q1FY25) on Thursday, August 1, reporting a two-fold surge of nearly 116 per cent in consolidated net profit at ₹1,454 crore, compared to ₹674 crore in the corresponding period last year.

The Ahmedabad-based flagship company of billionaire Gautam Adani's ports-to-power conglomerate reported a rise of 13 per cent year-on-year (YoY) in consolidated revenue from operations for the first quarter of the current fiscal at ₹25,472 crore, compared to ₹22,644 crore in the year-ago period.

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Adani Enterprises Q1 Results: Key Metrics

On the operational front, Adani Enterprises' earnings before interest, tax, depreciation, and amortization (EBITDA) during the June quarter rose 47 per cent to ₹3,705 crore, compared to ₹2,525 crore in the same period last year. Margin rose to 14.6 per cent compared to 11 per cent in the year-ago period.

The surge in net profit was boosted by solid revenues at its airports and mining businesses and by growth in the new energy business, which outweighed weakness in coal trading. Adani New Industries Ltd (ANIL), the company's new energy business unit, posted a 3.6x jump in EBITDA to ₹1,642 crore on growth in solar manufacturing and wind turbine businesses.

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New energy contributes 38 per cent of the company's total EBITDA, which jumped 48 per cent to ₹4,300 crore in the April-June quarter of current 2024-25 fiscal year, from ₹2,897 crore in the year-ago period. The new energy business, which comprises 15 per cent of net revenue, posted a growth due to a jump in solar module volumes and prices. 

The airports business saw a 33 per cent rise in pre-tax earnings to ₹682 crore, but the company's mainstay coal trading business revenue fell 34 per cent to ₹15,042 crore due to lower coal volumes and prices. Airports operated by the group handled seven per cent more passengers at 22.8 million in the quarter and 17 per cent more cargo at 2.7 lakh tonnes.

“The emerging core infra businesses comprising ANIL Ecosystem, Airports and Roads are consistently making significant strides in their operational performance. The contribution of these businesses to the overall EBITDA has now increased to 62 per cent in Q1 FY25 (2024-25) compared to 45 per cent in Q1 FY24,” said Adani Enterprises in a regulatory filing to the stock exchanges.

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Commenting on the results, Gautam Adani, Chairman, Adani Group, said, "Adani Enterprises is further expanding its position as India's leading business incubator and a global model in infrastructure development. The substantial growth in EBITDA, driven by the exceptional performance of the ANIL ecosystem, our airport operations and road construction business, underscores our commitment to operational excellence and sustainable value creation.''

Solar module sales increased by 125 per cent to 1,379 MW, while exports more than doubled. Adani Enterprises said it operated at full capacity of 4 GW for both cell and module lines. In wind turbine manufacturing, an application for registration as a manufacturer has been made for 5.2 MW prototype blades, while the final type certificate was received for a 3 MW wind turbine generator. 

The construction of its data centre in Noida is 89 per cent complete, while the Hyderabad centre is 94 per cent complete. During the June quarter, the road business saw the highest-ever 730 lane-km construction. 

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Adani's food FMCG biz to demerge, integrate with Adani Wilmar

The company's board approved demerging the food and fast-moving consumer goods (FMCG) business segment and its integration with Adani Wilmar. The food and FMCG biz primarily involves trading and supplying edible oil and other allied commodities.

The flagship’s board approved the demerger of the food business to Adani Wilmar Ltd., along with Adani Enterprises’s “strategic investment in Adani Commodities LLP," the company said in a statement. The food FMCG business has become self-sustained, performing well, and poised for further growth under Adani Wilmar, the Adani Group said as it announced the demerger. Adani Wilmar offers essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar.

Adani Enterprises oversees a motley mix of businesses, from coal trading to airports to data centers and green hydrogen. On Thursday, shares of Adani Enterprises settled 1.57 per cent higher at ₹3,218.75 apiece on the BSE.