Adani Enterprises Q2 net profit halves to ₹228 crore | Mint
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Business News/ Companies / Company Results/  Adani Enterprises Q2 net profit halves to 228 crore
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Adani Enterprises Q2 net profit halves to ₹228 crore

Revenue during the period stood at ₹22,517.3 crore, down 41% from ₹38,175.23 crore a year ago

Adani Enterprises (Bloomberg)Premium
Adani Enterprises (Bloomberg)

Mumbai: Adani Enterprises Ltd, the flagship company of the Adani Group, on Thursday said its consolidated net profit for the September quarter declined by 50% to 227.82 crore, primarily due to a weak performance in its key coal trading division, Integrated Resources Management.

Adani Enterprises’ net profit stood at 460.94 crore in the year-ago quarter.

Revenue from Integrated Resources Management, which includes revenue from a coal trading division, contributed about 80% to the revenue during the same period last year. This slumped 59% to 12,505 crore in the three months to September from 30,664 crore a year ago, impacted mainly by corrections in coal prices and lower sales volume.

The company’s consolidated revenue in Q2 was at 22,517.3 crore, down 41% from 38,175.23 crore in the year ago quarter, according to a regulatory filing. This, despite other businesses, such as airports and new energy, reporting healthy growth.

After opening at 2,248 apiece on the BSE, shares of Adani Enterprises Ltd pared gains to close Thursday at 2,215.30.

Revenue from the new energy ecosystem, including solar and wind energy, stood at 1,939 crore during the period under review, rising 216% over a year earlier. The conglomerate has expanded its operational solar manufacturing capacity to 4 gigawatt, while module sales have increased by 205% to 630 megawatt.

Revenue from its airport business rose 49% from a year earlier to 1,946 crore in Q2 FY4 due to strong operational performance on the back of an increase in travel.

Its seven operational airports saw 31% increase in passenger traffic to 21.4 million, a 17% increase in air traffic to 148,200 passengers, and cargo volumes of 190,000 metric tonnes.

The growth in the aviation and new energy sectors is set to continue during the second half of the fiscal year with the group expecting the businesses to contribute more.

“We are fundamentally reshaping the essence of incubation scale and velocity... With many ventures now market-ready and thriving, our H1 FY23-24 results have been boosted by core infra incubating businesses, thereby being a strong testament to our incubating ventures," Gautam Adani, chairman, Adani Group, was quoted saying in a press note.

Analysts attributed the fall in profit to low coal prices and said this will hit the company in the medium term.

“Key reason for the decline in profit is the reduction in coal price and this factor is hurting the company’s profit in the short- to medium-term as coal prices have been in a negative trend in the past quarter," said Kranthi Bathini, director, equity strategy, WealthMills Securities Pvt Ltd.

The company said it recorded a one-time loss of 88 crore in July-September on the realisable value of assets held for sale of one of the subsidiaries of the group, Mundra Solar PV Ltd. Its loss in commercial mining more than doubled in Q2 FY24, up from 132.22 crore to 340 crore. Its cash accruals rose 26% from a year earlier to 1,242 crore and gross debt stood at 42,102 crore at the end of September.

It total income doubled to 548.70 crore in Q2 from 266.23 crore a year earlier.Adani Enterprises’ market capitalization stands at 2.5 trillion, yet has delivered -38% return to investors in the past one year, lagging the Nifty 50 index, which gave 6% return during the same period.

 

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Published: 02 Nov 2023, 03:17 PM IST
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