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Adani Enterprises saw a 38% drop in Q4 net profit to ₹451 crore, largely due to increased expenses and exceptional losses.
Despite this, the board proposed a ₹1.30 per share dividend.
However, the company's annual performance was positive, with a 32% rise in EBITDA to ₹13,237 crore and a 56% increase in profit before tax to ₹5,640 crore.

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Adani Enterprises's board has proposed a dividend of ₹1.30 per equity share

Adani Enterprises's Q4 net profit declines 38% to ₹451 crore

By Mudit Dube

May 02, 2024

05:34 pm

What's the story

Gautam Adani-led Adani Enterprises has announced a significant 38% year-on-year decrease in its consolidated net profit for the fourth quarter ending March 2024. The company reported a net profit of ₹451 crore, down from ₹722.48 crore recorded in the same quarter of the previous fiscal year. Adani Enterprises's consolidated revenue from operations saw a marginal increase of 0.81%, reaching ₹29,180 crore compared to ₹28,944 crore last year.

Dividend proposal

Adani Enterprises proposes dividend amid profit dip

Despite a dip in net profit, Adani Enterprises's board has proposed a dividend of ₹1.30 per equity share for the financial year 2023-24. The record date for this proposal is set for June 14, 2024. On a sequential basis, the company's consolidated profit after tax (PAT) saw a substantial decrease of 76% against ₹1,888.45 crore reported in Q3FY24 while revenue was down by 16.5% compared to ₹25,050 crore.

Financial challenges

Escalating expenses and exceptional losses impact Adani's profit

The slump in Q4FY24 profit is primarily due to an escalation in expenses and exceptional losses for the company. Total expenses surged to ₹28,308.67 crore, indicating a year-on-year leap of over 19%. The company also registered a decrease of ₹88 crore in realizable value of assets held for sale by one of its subsidiaries, Mundra Solar PV Limited. Another subsidiary, Mumbai International Airport Limited, accounted annual fees of ₹627.37 crore as an expense from March 2022 to September 2022.

Annual performance

Adani Enterprises records increase in annual EBITDA

Adani Enterprises's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for Q4FY24 were recorded at ₹3,646 crore versus ₹3,974 crore in Q4FY23. However, for the entire fiscal year, the consolidated EBITDA saw a 32% increase to ₹13,237 crore. The company also reported a rise of 56% in profit before tax (PBT) to ₹5,640 crore for the fiscal year. This indicates an overall positive annual financial performance despite the quarterly drop in net profit.