Adani Enterprises Q3FY25 results: Net profit plunges 96.9% to Rs 58 crore

Profit before interest, depreciation, and tax (PBIDT) for the company was flat at Rs 3,723 crore on a year-on-year (Y-o-Y) basis

Bs_logoAdani Group, Adani Enterprises, Gautam Adani
Amritha Pillay Mumbai
3 min read Last Updated : Jan 30 2025 | 10:56 PM IST
Flagship entity Adani Enterprises reported a 96.9 per cent decline in its consolidated net profit (attributable to the owners of the company) in the October-December 2024 quarter, as volumes for its coal trading and mining business took a hit. The company also saw a sharp rise in finance costs.
 
The company noted that the quarter’s results include the impact of a high notional foreign exchange (forex) mark-to-market (MTM) loss in finance costs of the Australia mining business due to the depreciation of the Australian dollar.
 
For the quarter under review, the company reported a net profit of Rs 58 crore, against a net profit of Rs 1,888 crore in the same period last year. Revenue for the same period also fell 8.8 per cent to Rs 22,848 crore from a year earlier. Finance costs for the quarter rose sharply to Rs 2,141 crore, a more than three-fold rise from Rs 597 crore a year ago.
 
Sequentially, the company’s net profit was down 96.7 per cent, while revenue was up by 1.1 per cent.
 
Profit before interest, depreciation, and tax (PBIDT) for the company was flat at Rs 3,723 crore on a year-on-year (Y-o-Y) basis.
 
In its investor presentation, the company noted that earnings from its established businesses were impacted due to low volumes in the integrated resources management (IRM) business and forex MTM loss (primarily in the Australia business). IRM refers to the company’s coal mining and trading segment, which reported segment revenue of Rs 8,979.61 crore, down from Rs 16,021.04 crore a year ago.
 
The company’s commercial mining business also reported a segment loss (before interest and tax) of Rs 419.52 crore, against a profit of Rs 274.01 crore a year ago.
 
On its plans to exit Adani Wilmar (AWL), the company noted that Adani Commodities LLP (ACL) has launched an offer for sale (OFS) and has sold 17,56,01,314 equity shares, representing 13.51 per cent of the paid-up equity share capital of Adani Wilmar. “After completion of the OFS, ACL's stake in the jointly controlled entity, AWL, is reduced from 43.94 per cent to 30.42 per cent,” the company noted.
 
On ongoing capital expenditure, the company indicated a capex of $8.2 billion and added that it expects the 500-kilo tonnes per annum (KTPA) copper plant to become fully operational in the June 2025 quarter and its one million tonnes per annum polyvinyl chloride (PVC) plant to go live in FY28.
Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories

  • Over 30 subscriber-only stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :foreign exchangeAdani EnterprisesQ3 results

First Published: Jan 30 2025 | 5:11 PM IST