Adani Enterprises Q1 profit surges 116%, board approves FMCG business demerger

Adani Enterprises Q1: Adani Group flagship Adani Enterprises has announced its Q1 earnings for the fiscal year 2024, showcasing robust growth across various financial metrics. The company reported a substantial increase in net profit, revenue, and EBITDA, reflecting its strong operational performance and strategic initiatives.

The net profit for Q1 surged 115.87 per cent to Rs 1,455 crore, a remarkable increase from Rs 674 crore in the same quarter last year. This significant rise underscores the company's enhanced profitability and efficient cost management.

The revenue for the quarter stood at Rs 25,472 crore, up 13 per cent from Rs 22,644 crore in the corresponding period of the previous year. The growth in revenue is attributed to higher volumes in Integrated Resources Management (IRM) and improved performance in the Airports and Mining services businesses.

Gautam Adani, Chairman of Adani Group, said, “Our strong Q1 performance is a testament to our strategic initiatives and operational excellence. We remain focused on driving growth across our business segments and delivering value to our shareholders.”

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) witnessed a 47 per cent increase, reaching Rs 3,705 crore compared to Rs 2,525 crore in the previous year. This increase in EBITDA is a testament to the company's operational efficiency and cost optimisation efforts. The EBITDA margin for Q1 improved to 14.6 per cent, up from 11.1 per cent in the same period last year. The margin expansion highlights the company’s ability to enhance profitability through strategic initiatives and operational efficiencies.

Integrated Resources Management

The IRM segment continues to be a significant revenue driver, contributing substantially to the company's top-line growth. The segment's performance was bolstered by increased trading volumes and favorable market conditions.

Airports business

Adani Enterprises' Airports division reported higher passenger footfall and increased cargo volumes, contributing positively to the overall revenue growth. The company operates some of India's busiest airports, including Mumbai and Ahmedabad.

Mining services

The mining services segment saw improved performance due to higher production volumes and efficient operations. The segment's growth is aligned with the company’s strategic focus on expanding its footprint in the mining industry.

Board approves demerger

Adani Enterprises' board has approved the demerger of its Food FMCG business, aiming to streamline operations and focus on core business areas. This move is expected to unlock value for shareholders and enable the company to concentrate on its high-growth sectors.

The shares of Adani Enterprises ended 1.76 per cent higher at Rs 3,225.10 apiece on the National Stock Exchange on Thursday, August 1, 2024.