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Adani Enterprises Ltd Sees Remarkable Growth in Net Profit

Significant Increase in Profitability

Adani Enterprises Ltd, the flagship entity of billionaire Gautam Adani’s vast conglomerate, has reported an astounding nearly eight-fold increase in its net profit for the September quarter. This impressive surge is primarily attributed to solid earnings derived from its airport operations and burgeoning new energy units, which have effectively counterbalanced the downturn experienced in the coal trading segment.

According to the official company announcement, the net profit for the July-September period in the fiscal year 2024-25 reached an impressive ₹1,741 crore. This figure marks a staggering 663% rise compared to the ₹228 crore profit reported during the same quarter of the previous year.

Strong Financial Metrics

In terms of earnings before interest, taxes, depreciation, and amortization (EBITDA), the company reported a notable increase of 46%, amounting to ₹4,354 crore. Meanwhile, total revenue reported a 15% rise, reaching ₹23,196 crore. Such robust financial statistics underscore the strength and resilience of the company’s diversified business model.

Notably, the performance of the company’s other key divisions has also shown consistent growth across both top and bottom lines, with the exception of the coal trading sector, which has faced challenges.

Outstanding Performance Across Business Units

Adani New Industries Ltd, responsible for overseeing the new energy sector that specializes in solar module and wind turbine manufacturing, experienced an extraordinary 78% escalation in pre-tax profit, climbing to ₹1,121 crore. Additionally, the earnings from the airport operations spiked by 31% to ₹744 crore, with both sectors witnessing significant revenue increases.

Furthermore, the mining services division also reported a remarkable 65% rise in EBITDA, reaching ₹400 crore for the September quarter. However, it is essential to note that the coal trading unit observed a decrease in earnings, with figures falling to ₹1,916 crore from ₹2,063 crore due to a drop in revenues.

Record Half-Yearly EBITDA

The company highlighted its achievement of recording the highest half-yearly EBITDA of ₹8,654 crore, which can be attributed to the robust performance of its emerging infrastructure businesses within its incubation portfolio. AEL’s emerging core infrastructure businesses experienced substantial growth, reporting a half-yearly EBITDA of ₹5,233 crore, up by 85% year-on-year owing to commendable operational performance.

Additionally, earlier this month, Adani Enterprises Ltd successfully raised ₹4,200 crore through a share sale aimed at qualified institutional investors.

Strategic Focus and Vision

In a statement reflecting on the company’s growth trajectory, Gautam Adani, Chairman of the Adani Group, emphasized the firm’s dedication to investing strategically in logistics, energy transition, and sectors that are integral to the country’s economic progression. He mentioned that this record-breaking half-year performance has been primarily driven by the burgeoning Adani New Industries Ltd (ANIL) and Adani Airport Holdings Ltd (AAHL). These units have showcased rapid growth through increased capacity additions and enhanced asset utilization.

Adani also pointed out that the focus remains on executing large-scale greenfield projects within ANIL, which includes the establishment of three giga-scale integrated manufacturing plants and the accelerated development of Navi Mumbai International Airport.

Future Growth Potential

Looking ahead, AEL is positioned to replicate this rapid growth across various sectors, including data centers, roads, metals & materials, and specialized manufacturing. The company plans to continually invest in pioneering technology across its platforms to underpin this high-growth phase. Recent business updates indicate that sales of solar modules have surpassed 2 GW in the first half of the current fiscal year, with exports witnessing a significant 64% increase and domestic sales having more than doubled.

The statement also noted that EBITDA margins have continued to improve, thanks to enhanced realizations and operational efficiency achieved through the integrated production of cell and module lines.

Progress on Data Centers and Airports

In terms of infrastructure development, the company mentioned that the construction of data centers in Noida and Hyderabad is nearing completion, while the Pune center is currently 38% complete. Additionally, the company reported that its seven airports have seen an increase in passenger footfall, rising to 45.1 million during the April-September period from 42.6 million in the same timeframe last year.

However, it’s noteworthy that gross debt surged by 52%, reaching ₹63,855 crore for the September quarter, compared to ₹50,124 crore at the end of March 2024.

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