Adani Enterprises Q3: Revenue rises but bottom-line misses estimates!

Adani Ent Q3

Profit Slump - Adani Enterprises reported a consolidated loss of Rs 11.6 crore for the December quarter. The consolidated profit declined from Rs 297 crore in the same quarter last financial year. The company's expenses increased exponentially which led to lower profits. Expenses increased from Rs 11,303.97 crore in Q3FY21 to Rs 19,047 crore in Q3FY22.

Revenue increase - The revenue increased by 61% YoY to Rs 18,963.40 crore in Q3FY22 compared to Rs 11,787.82 crore in Q3FY21. Sequentially, the revenue was up by 42% from Rs 13,218 crore in Q2FY22. 

Update on airports business - Revenue was up by 1500% to Rs 837 crore from Rs 50 crore in the year-ago period. Between October and December, the company took over Guwahati, Jaipur, and Thiruvananthapuram airports. It now holds a portfolio of seven operational airports. Adani Airports handle 14.5 million passengers along with 1,17,525 Air Traffic movements and over 180,000 metric tonnes (mt) of cargo handling.

Update on other business 

  • Mining - This segment saw an increase in revenue by 16% YoY to Rs 694 crore from Rs 599 crore in the same period in the last financial year.
  • Solar Manufacturing - Revenue declined for this segment from Rs 864 crore in Q3FY21 to Rs 621 crore in Q3FY22.
  • Integrated Resources Management - The revenue was up by 70% and stood at Rs 12,735 crore from Rs 7,469 crore in Q3FY21.
  • The group also incorporated 'Adani New Industries Ltd' for generation of green hydrogen, related downstream products, manufacture of wind turbines, batteries, and electrolyzers, among others. 

New deals - It received LOA of Rs 17,100 crore for construction and maintenance for three greenfield Ganga Expressway roads projects of 464 kilometers in Uttar Pradesh on the build, operate, and transfer (BOT) basis. A memorandum of understanding (MoU) was signed with POSCO for establishment of a green, environment friendly integrated steel mill at Mundra Gujarat with approximate investment of $5 billion.

Adani-Wilmar up after listing

In its first quarterly results after listing on stock exchanges, Adani Wilmar Limited (AWL) has registered a net profit of Rs 211 crore for the Q3, FY22. A joint venture between Adani Group of India and Wilmar Group of Singapore, AWL's consolidated revenues for the quarter stood at Rs 14,379 crore in FY22.

Adani Enterprises Q3 Results Review:

The company has reported a muted bottom-line while the topline growth is good. The company did mention that it is not right to compare the bottom-line from the previous quarter due to the consolidation of Mumbai Airport where the group acquired a 97.97% stake in GVK Airport Developers Limited. All segments except solar manufacturing have grown YoY. 

Adani Enterprises' share was up 4.56% and was trading at Rs 1739.9 on Tuesday.