Adani Group profit up 55% in fianancial year 2023-24
New Delhi: Adani group saw a 55 per cent profit surge in the fiscal year ended March 2024 as the apples-to-airport conglomerate is back on an expansion spree and eyeing a $90 billion capex over the next decade.
Adani group in FY24 focused on containing debt, reducing founder share pledge and consolidating business in core competencies.
This helped net profit surge to Rs 30,767 crore for the group’s listed companies in the fiscal from Rs 19,833 crore a year ago, according to exchange data and analysts.
The 5-year CAGR (compound annual growth rate) for profit growth was 54 per cent.
EBITDA rose 40 per cent to Rs 66,244 crore despite a 6 per cent fall in the revenue.
“Total group EBITDA grew 40 per cent year-on-year in FY24 (5-year CAGR of over 27 per cent), group raised fresh funds from equity/debt/strategic investors, promoter increased stake in group companies and group Mcap rebounded,” Jefferies said in a note. “The group is back on an expansion spree and eyeing $90 billion capex over next decade.”
“Net debt at the group level (8 companies plus debt related to cement business acquisition) remained stable at Rs 2.2 lakh crore in FY24 vs Rs 2.3 lakh crore. Net debt/EBITDA improved materially to 3.3x FY24 EBITDA vs 5x year-on-year,” it said. Adani Ports and Adani Power saw a drop in net debt in FY24. Increase in leverage for Adani Enterprises and Adani Green was on the back of new capex projects undertaken by companies. In FY24, the group’s flagship Adani Enterprises commissioned an ingot wafer unit as part of solar module manufacturing, wind turbine facility and copper smelter.
Moreover, Adani Ports and SEZ (APSEZ) on Friday said its subsidiary company has signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage a terminal at the Dar es Salaam Port in the east African country.
The Dar es Salaam Port is a gateway port with a well-connected network of roadways and railways, and concession agreement signed by Adani International Ports Holdings Pte Ltd (AIPH) marks the entry of Adani Ports into Tanzania.
Adani Ports-led consortium will acquire the project company in Tanzania, which houses all port handling equipment and employees, for an amount of $39.5 million, APSEZ said in a statement. East Africa Gateway Ltd (EAGL) has been incorporated as a joint venture of AIPH, AD Ports Group, and East Harbour Terminals Ltd (EHTL), the statement added. APSEZ will be the controlling shareholder and will consolidate EAGL on its books, it said.
According to the statement, EAGL has signed a share purchase agreement for the acquisition of 95 per cent stake in Tanzania International Container Terminal Services Limited (TICTS) from Hutchison Port Holdings Limited (and its affiliate Hutchison Port Investments Limited) and Harbours Investment Limited for a purchase consideration of $39.5 million.
