Adani Enterprises' net profit down y-o-y by 38% in March quarter

3 May 2024 , 10:53 AM

Adani Enterprises’ net profit for the fourth quarter of FY24 decreased by 38% year over year to ₹451 Crore, mostly as a result of an unusual expense and rising operational and material expenses. In the fiscal fourth quarter, the flagship company of the Adani Group had a nearly 1% YoY increase in income from operations, reaching ₹29,180 Crore, the company reported in an exchange filing on May 2.

Additionally, Adani Enterprises announced a dividend for the entire fiscal year 2023–2024 of ₹1.3 per share. The stock was trading at ₹3,003.35, down 1.14% as of 10:49 a.m.

The operating costs of Adani Enterprises, which increased by 31% year over year to ₹9,324 Crore, appear to have taken the biggest toll on the company’s Q4 results. During the quarter, the cost of materials utilised more than doubled from ₹1,324 Crore to ₹2,824 Crore, year over year.

The figures showed that the company’s overall expenses for the quarter increased by 2% year over year to ₹28,309 Crore, eating up more of the gains in total income.

Additionally, the Mumbai International Airport Ltd.’s yearly fees resulted in an extraordinary loss of ₹627 Crore for the Adani Group firm, which runs the airport, as an expense for the months of March through September 2022.

Pre-tax profit for the conglomerate’s road infrastructure division fell by 84%.

While the company’s core coal trading operation saw nearly double-digit profit before taxes to ₹1,571 Crore, the mining and infrastructure segments performed poorly.

To achieve net zero emissions for its ports, power, and cement activities by 2050, the Adani Group also intends to invest up to $100 billion in green energy transition over the following ten years. In its efforts to decarbonise operations, the business also intends to increase the usage of green hydrogen.

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