Flagship entity Adani Enterprises reported a 96.9 per cent decline in its consolidated net profit (attributable to the owners of the company) in the October-December 2024 quarter, as volumes for its coal trading and mining business took a hit. The company also saw a sharp rise in finance costs.
The company noted that the quarter’s results include the impact of a high notional foreign exchange (forex) mark-to-market (MTM) loss in finance costs of the Australia mining business due to the depreciation of the Australian dollar.
For the quarter under review, the company reported a net profit of Rs 58 crore, against a net profit of Rs 1,888 crore in the same period last year. Revenue for the same period also fell 8.8 per cent to Rs 22,848 crore from a year earlier. Finance costs for the quarter rose sharply to Rs 2,141 crore, a more than three-fold rise from Rs 597 crore a year ago.
Sequentially, the company’s net profit was down 96.7 per cent, while revenue was up by 1.1 per cent.
Profit before interest, depreciation, and tax (PBIDT) for the company was flat at Rs 3,723 crore on a year-on-year (Y-o-Y) basis.
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In its investor presentation, the company noted that earnings from its established businesses were impacted due to low volumes in the integrated resources management (IRM) business and forex MTM loss (primarily in the Australia business). IRM refers to the company’s coal mining and trading segment, which reported segment revenue of Rs 8,979.61 crore, down from Rs 16,021.04 crore a year ago.
The company’s commercial mining business also reported a segment loss (before interest and tax) of Rs 419.52 crore, against a profit of Rs 274.01 crore a year ago.
On its plans to exit Adani Wilmar (AWL), the company noted that Adani Commodities LLP (ACL) has launched an offer for sale (OFS) and has sold 17,56,01,314 equity shares, representing 13.51 per cent of the paid-up equity share capital of Adani Wilmar. “After completion of the OFS, ACL's stake in the jointly controlled entity, AWL, is reduced from 43.94 per cent to 30.42 per cent,” the company noted.
On ongoing capital expenditure, the company indicated a capex of $8.2 billion and added that it expects the 500-kilo tonnes per annum (KTPA) copper plant to become fully operational in the June 2025 quarter and its one million tonnes per annum polyvinyl chloride (PVC) plant to go live in FY28.