Adani Enterprises posts Rs 436 crore quarterly profit in September quarter

Turning profitable in the September quarter, Adani Enterprises on November 4 reported a quarterly consolidated profit of Rs 435.73 crore.

The Gautam Adani-led company had clocked a consolidated loss of Rs 10.06 crore in the corresponding quarter a year ago, according to a filing to the BSE. Its consolidated total income for the latest quarter rose to Rs 9,312.14 crore from Rs 8,626.94 crore in the year-ago period.

The total expenses increased to Rs 8,788.59 crore in the September quarter compared to Rs 8,571.75 crore in the same period a year ago. "The EBIDTA for the quarter increased by healthy 76 percent at Rs 951 crore owing to better volumes in mining services and solar manufacturing businesses," the company said in a statement.

EBIDTA stands for Earnings Before Interest, Depreciation, Taxes and Amortisation. The PAT (Profit After Tax) attributable to owners for Q2 FY21 was Rs 362 crore as against Rs 50 crore in the year-ago period. This is in line with the rise in EBIDTA margins, the statement said. The PAT was also impacted by exceptional write off of Rs 130 crore.

The ability to incubate, innovate and scale effectively and rapidly has been a defining philosophy of Adani Enterprises and we continue to learn and further improve this model. "The combination of our confidence in this business model, and our faith in India's growth story is demonstrated through the investments we are continuing to make in additional infrastructure sectors that are critical to nation building," Adani Group Chairman Gautam Adani said.

Further, he said that the move into roads and water infrastructure, data center parks, and airports, including the addition of the Mumbai International Airport and the Navi Mumbai International Airport, "provides us with a transformational platform that will help us create several strategic and growth-based adjacencies for our other businesses".

In the latest September quarter, solar manufacturing volumes increased by 50 percent at 418 MW while mining services production rose by 17 percent to 3.5 Million Tonne (MT).

"IRM (Integrated Resource Management) volume stood at 15.7 MT vs 16 MT," the company said.

The company said production volume at Parsa Kente mine in Chhattisgarh increased by 7 percent to 3.2 MT. Mining at GP III mine, Chhattisgarh commenced in Q3 FY20 and the volume was 0.2 MT while mining at Talabira II & III mines, Odisha started in Q1 FY21 and the volume was 0.1 MT.

About the airports business, the company said it took over the operation, management and development of Mangaluru and Lucknow airports on October 31 and November 2, respectively while operations of Ahmedabad airport will be taken over this month. The company had won bids for six airports at Ahmedabad, Mangaluru, Lucknow, Trivandrum, Jaipur and Guwahati.

In food business, the company said, it has maintained its leadership position with 'Fortune' brand and continues to lead the refined edible oil market with more than 20 percent market share.

In roads sector, the company has signed five concession agreements with NHAI under Hybrid Annuity Model for construction of roads aggregating to over 200 kilometres. Two of the agreements were signed in July in Andhra Pradesh and Madhya Pradesh.

The project completion status of Bilaspur-Pathrapali project at Chhattisgarh is about 50 percent, it said. The company also said that shareholders' value increased at a CAGR of 90 percent in the last three years on account of demerger of renewable generation and city gas distribution.