Adani Group profit in FY24 up by 55% to ₹30,000 Crore

1 Jun 2024 , 03:04 PM

Following the negative impact of the Hindenburg crisis on its reputation last year, Adani Group’s earnings after tax (PAT) in FY24 increased by 55% to ₹30,768 Crore, indicating that the apples-to-airport conglomerate is gradually returning to growth.

“The Adani group’s EBITDA (i.e., for the listed universe) increased by 40% YoY to ₹660 Billion in FY24, driven by lower imported coal prices, higher volumes, merchant contribution, and more than doubling of Adani Power’s EBITDA from capacity addition. EBITDA increase for the other group firms ranged from 16 to 33%, with the exception of Adani Wilmar, which had a YoY decrease.

Growth in new incubation industries, such as new energy, solar, airports, and IRM trading enterprises, drove Adani Enterprise’s 29% YoY EBITDA growth. The EBITDA scale up at Ambuja Cement was driven by a significant increase in unit EBITDA. While Adani Green’s 33% EBITDA growth was fueled by a 2.8GW capacity addition and a 100bps increase in CUF, Adani Port’s 24% EBITDA growth was primarily driven by volume growth.

Adani Total Gas’s 27% YoY growth was driven by 15% volume growth and gross margin expansion helped by lower gas costs, while Adani Energy Solutions’ 16% EBITDA growth was driven by new line addition. Due to misaligned hedges and inventory losses brought on by the drop in oil prices, Adani Wilmar’s EBITDA decreased year over year.

The group’s net debt at the end of FY24 was unchanged from ₹2.3 Trillion to ₹2.2 Trillion in FY24. Net debt/EBITDA increased significantly from 5x YoY to 3.3x FY24 EBITDA. In FY24, net debt for Adani Ports and Adani Power decreased. The study stated that new capital expenditure projects that the companies had undertaken were the reason for the increase in leverage for Adani Enterprises and Adani Green.

 

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