Adani Enterprises’ income doubles at Rs1.38 trillion even as the group faces CBI charges
For the March quarter, the company’s net profit jumped to Rs. 780.68 crore from Rs.325.76 crore in the corresponding period of the previous fiscal
PremiumMUMBAI : Adani Enterprises Ltd. (AEL), the flagship company of the Adani Group, announced on Thursday that its consolidated net profit had increased by more than two-fold to Rs. 2,421 crore from Rs. 787.7 crore in FY2022, but still were below Bloomberg estimates of ₹4201 crore.
For the March quarter, the company’s net profit jumped to Rs. 780.68 crore from Rs.325.76 crore in the corresponding period of the previous fiscal.
“The past year’s results represent indisputable evidence of the strength and resilience of the Adani Group’s operational and financial performance," said Gautam Adani, chairman, Adani Group, in a release.
“Our mega-scale infrastructure project execution capabilities and our O&M management skills, which are comparable to the best in the world, are strengths that we continue to derive from the Adani portfolio’s diversity to create reliable long-term value for all our investors," said Adani.
The Adani group’s listed flagship’s total income almost doubled to Rs.1.38 trillion during FY2023 from Rs. 70,432.69 crore in FY2022. Bloomberg estimates had forecasted total annual revenues for the year at ₹1.49 trillion.
However, the company’s total expenses also doubled at Rs.1.34 trillion in FY2023 as compared to Rs.69,480.64 crore during FY2022.
For the March quarter AEL’s total Income increased by 26% to Rs. 31,716 crore on a year-on-year basis on the back of the group’s performance by airports business.
The company’s board, on Thursday, recommended a final dividend of Rs.1.20 per equity share each for the financial year 2022-23. The company will hold its annual general meeting on 18 July to consider the resolution.
The company’s networth has risen to Rs.37,890.05 crore as at the end of March, 2023 from Rs.26,928.37 crore at March end of last year.
During the March quarter, Adani Airports Holdings Ltd handled at least 21.4 million passengers, up by 74% YoY. The airport arm witnessed a 56% rise in air traffic movements at 149.4K and handled 1.8 lakh MT of cargo (up by 14% YoY).
Adani Group has witnessed an eventful year during fiscal 2023.
During FY2023, AEL has issued 40.19 million new equity shares for Rs.7,7001 crore (through preferential allotment route) to International Holding Company (IHC group), Abu Dhabi, UAE on 12 May 2022.
And, during the March quarter, a US-based short seller (Hindenburg Research) issued a scathing report, alleging certain issues against some of the Adani Group entities which have been refuted by AEL.
“…in context of the short seller's report, there is a petition filed in the Supreme Court, and Securities and Exchange Board of India is examining compliance of laws and regulations by conducting enquiries to the group's listed companies," said AEL in the filing.
At the end of fiscal 2023, AEL’s net cash from operating activities stood much higher at Rs.17,626.46 crore from Rs.1,385.28 crore at the end of March 2022.
The holding company of the embattled Adani Group on Thursday revealed in an exchange filing that during FY2023 certain investigations have been initiated by the Central Bureau of Investigation (CBI), the Enforcement Directorate and the Ministry of Corporate Affairs against AEL’s stepdown subsidiary -- Mumbai International Airport Ltd (MIAL), its holding company GVK Airport Holdings Ltd and the erstwhile promoter directors of MIAL for the period prior to 27 June 2020.
The agencies are yet to conclude their investigations and related proceedings.
During the March quarter, based on CBI’s submissions, the case was transferred to the jurisdictional magistrate court. Subsequently, in February 2023, the CBI filed a chargesheet with Mumbai magistrate court against accused including MIAL and the erstwhile managing director.
Amongst others, it was alleged in the chargesheet that the funds aggregating Rs. 846 crore were diverted from MIAL through false contracts, that are currently included in property, plant and equipment at a net book value of Rs.595 crore.
The company’s operating margin during FY2023 improved slightly to 6.44% from 5.35% in FY2022.
AEL said during FY2023 it has issued secured market linked non-convertible debentures of Rs.790 crore in tranches and has maintained a security cover of over 100% on the principal amount as on 31 March 2023 by way of pledge of shares of one of its subsidiaries Adani Road Transport Ltd. There is no interest or principal payment falling due in the next three months ending 30 June.
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