Adani Enterprises’ consolidated net profit in the second quarter of FY24 halved from a year ago on lower revenues, one-time expense and higher tax outgo.
Net profit fell 50.1 per cent from a year ago to ₹227.8 crore, while revenue from operations was 41 per cent lower at ₹22,517.3 crore. On a sequential basis, net profit fell 66.2 per cent and revenue fell 11.5 per cent.
Revenue of its integrated resources management vertical more than halved on year to ₹12,470 crore. This business manages coal and other mineral supplies. Other verticals such as mining services, commercial mining, the new energy ecosystem, airport operations and roads reported revenue growth.
The EBITDA margin rose to 10.79 per cent in the quarter, from 4.9 per cent a year ago. EBITDA rose 39 per cent to ₹2,979 crore on strong incubating businesses, it said, adding that cash accruals had risen 26 per cent to ₹1,242 crore.
An exceptional item of ₹88 crore was attributed to a decrease in the realisable value of assets held for sale by one of the subsidiaries, Mundra Solar PV Ltd. The tax outgo in the quarter was around 72 per cent higher from year ago at ₹398 crore.
The company said it had made significant progress in its strong incubation pipeline during the first half of the fiscal. The incubating businesses, including green hydrogen integrated manufacturing ecosystem, airports and roads, collectively contributed 48 per cent of the overall EBITDA.
“We are fundamentally reshaping the essence of incubation scale and velocity,” said Group Chairman Gautam Adani, “with many ventures now market-ready and thriving, our H1 FY24 results have been boosted by the core infra incubating businesses, thereby being a strong testament to our incubating ventures.”
It ended the September quarter with a gross debt of ₹42,102 crore, including founder’s debt of ₹9,378 crore.