Q2 Adani Ports profits scale new highs, while Adani Enterprises falters on weak commodities business
Mumbai: The board of directors of Adani Enterprises Ltd, the group’s flagship, on Tuesday ₹25,000 crore due to rights while the company’s revenue and profit fell due to weakness in coal trading business.
Meanwhile, Adani Ports and Special Economic Zone Ltd (APSEZ), the group’s cash-generating entity, reported strong growth in earnings as it handled more cargo and operated more ports compared to the previous year.
Adani Enterprises, which is developing new businesses for the Ahmedabad-based conglomerate and also houses one of the oldest resource trading businesses, reported a 6% year-on-year decline in total revenue. ₹21,844 crore. While revenue rose in its airports, renewable energy products and mining services businesses, its largest business segment, integrated resource management, saw its revenues fall by almost a third. ₹6,843 crore.
This also led to a hit to margins despite margin growth in all other segments. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by one tenth on an annual basis. ₹3,902 crore.
The company made a one-time profit ₹It raised Rs 2,969 crore by selling around 10.42% of its shares in AWL Agri Business Ltd, formerly known as Adani Wilmar. It also provided a one-time gain ₹615 crore from transfer of shares in Adani Cementation Ltd, a subsidiary, to Ambuja Cements in exchange for equity capital.
These outstanding gains helped the company nearly double its annual profits ₹3,199 crore. However, as a result of these gains, profits decreased.
Adani Group CFO Jugeshinder Singh said financials were impacted due to decline in trading volume and price fluctuations in the company’s key industry vertical. He said going forward, the company’s Ebitda will reflect the impact of its new and upcoming projects, including the Navi Mumbai airport, the new copper plant in Kutch, Gujarat, and the Ganga Expressway in Uttar Pradesh, which is about 90% completed.
raise funds
Adani Enterprises will rise so far ₹25,000 crore through rights issue for eligible shareholders, as approved by the company’s board of directors on Tuesday. This came after a fundraiser ₹4,200 crore through qualified institutional placement by the company in October 2024.
Adani Ports, the cash cow of the Adani Group, reported a 29% year-on-year increase in profit in the September quarter. The company’s revenue increased by 30 percent ₹9,167 crore.
The company currently operates 19 ports and terminals, four of which are international.
EBITDA increased by 27 percent ₹5,550 crore. The company’s key Mundra port in Gujarat reported a 20% increase in EBITDA ₹1,515 crore. The new transshipment terminal at Vizhinjam in Kerala, which was in trial phase last year, ₹153 crore added to Ebitda, while newly acquired Gopalpur port added another ₹16 crore.
“Our strong overall profitable growth momentum truly underscores the success of our unique integrated transportation service value proposition,” said Ashwani Gupta, full-time director and CEO of APSEZ. “Logistics and maritime businesses have continued their rapid growth trajectory, further strengthening our offering from port door to customer door.”
