Adani Enterprises Q3 net profit jumps 362% to Rs 426 crore; revenue up 5%

Adani Enterprises (AEL), the flagship company of the Adani Group, on Wednesday reported three-fold jump in its consolidated net profit at Rs 426 crore during the third quarter ended December 31, 2019. The Gautam Adani-led company had posted a consolidated net profit of Rs 92 crore during the same quarter last year.

Consolidated total income for the quarter increased by 5 per cent to Rs 11,075 crore against Rs 10,548 crore in the same quarter previous year, Adani Enterprises said in a filing to the Bombay Stock Exchange.

The company's EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) rose by 58 per cent to Rs 884 crore in Q3FY20 versus Rs 562 crore in Q3FY19.

For the nine month period ended December 31, 2019, the profit rose 148 per cent year-on-year to Rs 1,077 crore, while total income increased by 11 per cent to Rs 30,388 crore.

"We at Adani Enterprises, continue to focus on incubating assets in transportation and utilities space. These new India-centric businesses will be instrumental in the economic growth of the country, at the same time it will endorse our work and take the benefits to masses. In our journey, we are committed to deliver world class services along with creating value for all the stakeholders," said Gautam Adani, Chairman Adani Group.

The company said in the filing that shareholders value increased by compound annual growth rate (CAGR) of 72 per cent in last two years by demerger of renewable generation and city gas distribution businesses.

Also Read: Adani, Patanjali and Emami to gain from restrictions on Malaysian palm oil

In food business, the company has maintained its leadership position with its "Fortune" brand and continues to lead the refined edible oil market with more than 20 per cent market share, Adani Enterprises said in the exchange filing.

During the October-December period, mining services production increased by 28 per cent to 4.77 MMT versus 3.74 MMT in Q3 FY19. "While production volume at Parsa Kentecoal mine in Chhattisgarh increased by 26 per cent to 4.71 MMT, coal output at Gare Pelma III mine in Chhattisgarh was commenced with volume of 0.06 MMT."

Solar manufacturing volume witnessed a strong growth of 102 per cent to 283MW modules in Q3FY20 vs 140MW modules in Q3FY19. During the quarter, the company established India's largest solar cell and module manufacturing unit in Mundra SEZ with an installed capacity of 1.2 GW.

Also Read: Adani Group aims to become world's largest solar power player by 2025

In airport services, the company has won bids for six airports at Ahmedabad, Mangalore, Lucknow, Trivendrum, Jaipur and Guwahati during December quarter. Out of this, the company has received cabinet approval and security clearances for Ahmedabad, Mangalore and Lucknow.

In road business, the company has signed three concession agreements with NHAI under Hybrid Annuity Model till date for construction of roads aggregating to 150+ KMs, with project completion status of 30 per cent in Bilaspur-Pathrapali project at Chhattisgarh.

Buoyed by strong Q3 earnings, shares of Adani Enterprises closed 4.81 per cent higher at Rs 236.25 apiece on the BSE.

By Chitranjan Kumar