Adani Enterprises Q2 net more than doubles; revenue rises threefold

Adani Enterprises’ consolidated net profit for the quarter ended September (Q2) more than doubled versus last year to Rs 461 crore, its results showed on Thursday. The company’s consolidated revenue in Q2 surged nearly threefold year-on-year (YoY) to touch Rs 38,175 crore. 

While profit for the quarter came below Street estimates of Rs 554 crore as pegged by a poll of analysts by Bloomberg, its revenue reported by the company was ahead of the consensus estimate of Rs 34,669 crore for the period.

Consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 69 per cent to Rs 2,136 crore versus last year, its results showed. Bloomberg consensus estimates had pegged Ebitda in Q2 at Rs 1,643 crore, implying the reported number was well ahead of Street estimates, analysts said.

The robust growth in the topline and operational performance was on account of a strong earnings show by the integrated resource management business and airports vertical, the company said in a statement. Integrated resource management includes coal management operations. This business gives Adani Enterprises, led by billionaire Gautam Adani, almost 80 per cent of its revenue.

In Q2, integrated resource management, saw revenue growing over three times to Rs 30,435 crore YoY. The airports' business, which contributes over 3 per cent to revenue, increased nearly three times from the year-ago period to Rs 1,292 crore. The mining business, which contributes close to 5 per cent to the topline, reported a threefold jump in Q2 revenue to Rs 1,858 crore.

During the quarter, Adani Airports handled 16.3 million passengers, which is at 90 per cent of pre-Covid levels, the company said.

On Thursday, shares of Adani Enterprises closed trade 0.37 per cent higher than the previous day’s close to Rs 3,591.10 apiece. The stock price has more than doubled this year, as the firm steps up investments in new and existing areas of operations.

The group had indicated recently that it would invest $150 billion across businesses ranging from green energy to data centres to airports and healthcare, as it sought to join an elite group of companies in the world with a $1 trillion valuation.

The investment would include $50-70 billion in green hydrogen and another $23 billion in green energy over the next 5-10 years. It would also include $7 billion in electricity transmission, $12 billion in transport utilities and $5 billion in the roads sector.