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Adani Enterprises net profit rises over two-fold in Q1

FE Bureau
Adani, Adani profits, Adani Enterprises, Adani Enterprises net profit, April-June quarter

Adani Enterprises on Thursday reported a 2.5-fold growth on year in net profit for the April-June quarter of 2019, on a one-time gain of Rs 328 crore and higher sales during the quarter.

The company received a favourable judgement from the appellate tribunal over an ongoing claim over a price escalation and interest thereon over the payment dispute with the counter party for supply of coal, the company said.

The total revenue for the period rose 39% to Rs 10,686 crore on account of higher sales from the mining, solar manufacturing and the agro businesses during the quarter.

The earnings before interest, tax, depreciation and amortisation (Ebitda) for the period under review more than doubled to Rs 770 crore driven by growth in revenues. The operating margins for the period was up 256 basis points to 7.29%.

In the mine development and operations (MDO) business, the washed coal supplied to Rajasthan's discom rose 11% on year to 2.39 million metric tonne from its MDO business at Parsa Kente coal mines in Chattisgarh. The volumes from Adani’s solar cell and module-manufacturing unit in Mundra SEZ rose close to twofold to 236 MW modules from 81 MW modules a year ago. The plant has an installed capacity of 1.2 GW integrated cell and module-manufacturing unit.

Gautam Adani, chairman of Adani Enterprises, said, "Adani Enterprises continues to make significant strides in lining up the next set of businesses that included airport management, data centre parks, roads, water infrastructure and defence & aerospace. Its business portfolio has never been such stronger and each of these businesses led by focus on growth markets with offerings in the right product segments and compelling value proposition."

The company has committed an investment of Rs 10,000 crore for development of six airports that it won from Airports Authority of India on 50-year lease. Out of this, around Rs 3,600 crore will be invested as an upfront payment once the company takes over the airports.

Jugeshinder Singh, chief financial officer of Adani Enterprises, told media in a conference call, "Around Rs 1,600 crore, plus the additional amount of work in progress, will be invested in April 2020, when the company will take over three airports approved by the Union Cabinet."

On July 3, the Union Cabinet approved a proposal for leasing out of three airports, Ahmedabad, Lucknow and Mangaluru, of the Airports Authority of India through public-private partnership. These airports are part of six airports, including Trivandrum, Guwahati and Jaipur. All the six airports were won by Adani Enterprises for a period of 50 years in a bid process that saw participation from GMR, NIIF, Cochin International Airport and AMP Capital, among others.

The company also plans to invest big in its data centre business, which will be hyperscale data centres of over 1GW scale and will see participation from companies such as Google and Amazon in terms of usage of infrastructure, Singh said. "The company has plans to invest Rs 70,000 crore over next 20 years on data centres," Singh noted.