Adani Enterprises Shares Gain After Q4 Profit Sees A Two-Fold Jump

Shares of Adani Enterprises Ltd. gained on Friday after its net profit more than doubled in the March quarter.

The Gautam Adani-led company's fourth-quarter net profit rose 137% year-on-year to Rs 722.48 crore, according to an exchange filing, compared with a Bloomberg estimate of Rs 719.40 crore.

The net profit for the period was impacted by extraordinary items to the tune of Rs 362.32 crore. These include Rs 71.67 crore as expenses for floating an FPO in January and losses incurred at Mundra Solar PV Ltd., a subsidiary of Adani Enterprises, amounting to Rs 309.41 crore after adjusting for an unamortised government grant.

• Revenue jumped 26.06% to Rs 31,346.05 crore.

• Ebitda soared 184% to Rs 3,587.07 crore. (Bloomberg estimate: Rs 1,942.80 crore).

• Ebitda margin for the period stood at 11.44%, as compared with 5.08% in the corresponding quarter of the previous fiscal.

• Net profit rose twofold, growing 137% to Rs 722.48 crore. (Bloomberg estimate: Rs 719.40 crore).

"The past year’s results represent indisputable evidence of the strength and resilience of the Adani Group’s operational and financial performance. These exceptional results also highlight our consistent track record of gestating and building critical infrastructure businesses," said Gautam Adani, chairman of Adani Group.

Shares of Adani Enterprises rose 0.29% to Rs 1,916.8 apiece as of 9:36 a.m., compared to a 0.4% decline in the benchmark NSE Nifty 50. The stock rose as much as 2.29% intraday, the most since May 4.

The total traded volume so far in the day stood at 1.7 times its 30-day average. The relative strength index was 55.7.

One analyst tracking the company maintains a 'buy' rating on the stock, as per the Bloomberg data.

Disclaimer: AMG Media Networks Ltd., a subsidiary of Adani Enterprises Ltd., holds a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime