Adani’s Kutch Copper Forms JV for Metal, Cable Manufacturing

20 Mar 2025 , 11:06 AM

Adani Enterprises Ltd. has inked a joint venture pact through its wholly-owned subsidiary Kutch Copper Limited (KCL) with Praneetha Ventures Private Limited to form Praneetha Ecocables Limited (PEL). Kutch Copper, through its wholly owned subsidiary, will own 50% equity stake in Praneetha Ecocables Limited, engaged in manufacturing, marketing, and distribution of metal products wires and cables.

The joint venture was formally constituted on March 19, 2025, having an authorized and paid-up capital of ₹10 lakh divided into 1,00,000 equity shares of ₹10 each. Kutch Copper Limited has registered Praneetha Ecocables Limited with the Registrar of Companies, Ahmedabad, as a step towards expansion and diversification in the metal and cable manufacturing industry.

Adani Enterprises Ltd. said revenue for the December quarter of FY was down 8.8% on-year at ₹22,848 crore, compared with ₹25,050 crore in the same quarter a year prior. The company’s earnings before interest, tax, depreciation and amortization (EBITDA) fell 4.8% on-year to ₹3,069.4 crore.

EBITDA margins expanded by 50bps to 13.4% from 12.9% last year indicating some operational efficiency despite revenue decline. However, finance cost zoomed to ₹2,141.3 crore from ₹596.6 crore in the same quarter of the previous financial year. Depreciation cost increased to ₹1,005.6 crore from ₹760 crore quarter last year owing to higher asset related costs.

The company reported a forex loss of ₹296 crore against a forex gain of ₹101 crore YoY, indicating volatility in currency transactions. The tax expenses for the quarter rose to ₹588 crore from ₹443 crore in the same quarter of the previous financial year. The formation of Praneetha Ecocables Limited is in line with the strategic vision of Kutch Copper Limited to consolidate its presence in the metals and cables sectors as Adani Enterprises maneuvers through financial difficulties in Q3 FY25.