Adani Enterprises's Q2 profit plummets 51% YoY to Rs. 228cr
What's the story
Gautam Adani's flagship company, Adani Enterprises Ltd, witnessed a 51% year-on-year (YoY) drop in consolidated net profit for the quarter ending September 2023, totaling Rs. 227.82 crore.
In the corresponding quarter of the previous year, the company's net profit stood at Rs. 460.94 crore.
The firm's revenue from operations declined by 41% YoY to Rs. 22,517.30 crore, down from Rs. 38,175.23 crore in the corresponding quarter previous year.
Details
Sequential decline in net profit and revenue
On a quarter-to-quarter basis, the net profit plunge was even more striking, surpassing 66%, while overall revenue fell by over 11%.
Despite these considerable reductions in both top-line and bottom-line numbers, Adani Enterprises managed to achieve a robust operational performance during the quarter.
What Next?
Strong operational performance amid declines
The company's consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed by an impressive 30% YoY to Rs. 2,430.29 crore.
This increase led to a sizable expansion of the operating margin, which soared by 589 basis points annually to reach 10.79%.
Adani Enterprises credited the healthy EBITDA growth to robust incubating businesses.
Insights
Gautam Adani on incubating ventures and business performance
Adani Group's Chairman Gautam Adani said, "We are fundamentally reshaping the essence of incubation scale and velocity."
He further mentioned that numerous ventures are now market-ready and flourishing, contributing to the H1 FY24 results being bolstered by core infra-incubating businesses.
During the quarter, the green hydrogen projects business under ANIL Ecosystem and the airport business performed well.
However, the integrated resource management (IRM) business faced challenges due to reduced volume and adjustments in coal prices, affecting the company's overall earnings.