Adani Group Sees Strong June Quarter Earnings Driven By Emerging Businesses

The Adani Group companies reported strong first-quarter performance driven by growth in their emerging businesses, including solar and wind manufacturing, airports, and roads.

Billionaire Gautam Adani-led conglomerate's net profit for the first quarter of fiscal 2024–25 surged by 50.1% to Rs 10,279 crore on a year-on-year basis, the group said in a statement on Monday. Operating income, or earnings before interest, taxes, depreciation, and amortisation, was up 32.9% year-on-year to Rs 22,570 crore.

These fast-growing businesses now contribute 13.3% to the portfolio-level Ebitda, up from 7.2% a year ago.

The first quarter Ebitda for the core infrastructure businesses—utility, transport, and infra businesses under Adani Enterprises Ltd.—rose 41.6% compared to the previous year, accounting for 84% of total Ebitda.

The group attributed the expansive yet resilient growth to Adani's strategic focus on its infrastructure platform, which offers high stability and predictability.

The group market has made significant progress in terms of leverage. As of March 31, 2024, the net debt to Ebitda was at a multi-year low of 2.2 times.

• The solar manufacturing business operationalized Mundra Solar Pvt. cell lines.

• In airports busniess, the annual passenger movement across seven airports crossed 9 crore for the first time.

• During the quarter, eight new routes, six new airlines, and 13 new flights were added across all seven airports.

• The roads business saw the highest ever 730 lane-km construction done during this quarter.

• Construction work for 500 megawatt hydro pump storage has commenced.

• Capacity addition of 31% YoY during the quarter.

• Another 250-wind capacity was operationalized in July at Khavda, total capacity now stands at 11.2 gigawatt.

• The Khavda-Bhuj Transmission Line is fully commissioned.

• The 1765 ckm Warora Kurnool Transmission Line was fully commissioned.

• Vizhinjam port formally commissioned in July and will become operational in November.

• Promoters infused Rs 15,000 crore in two tranches in Ambuja Cements in March and April, thus fully subscribing to the warrant program and infusing a total of Rs 20,000 crore since the acquisition in September 2022.

• Acquired Penna Cement, increasing the total capacity to 89 million tonne per annum.