Newzdaddy Market Updates
Quarterly EBITDA almost equals full year FY19 EBITDA of INR 24,780 crore
Editor’s synopsis
- Adani’s portfolio continues to deliver robust well-rounded performance; the June quarter portfolio-level EBITDA increased to INR 23,532 crore, 42% higher year-on-year
- The infrastructure & utility segment generated EBITDA of INR 20,233 crore, accounting for 86% of portfolio-level EBITDA; this lends a high degree of stability and multi-decadal visibility and predictability.
- Incubation under flagship Adani Enterprises continues to be a success story with Airports, Green Hydrogen, and other businesses now accounting for 7% of portfolio level EBITDA; these infra businesses delivered 96% EBITDA growth y-o-y.
Ahmedabad, 23 August 2023:
The Adani Group portfolio delivered yet another outstanding performance with an all-time high quarterly profit (EBITDA) of INR 23,532 crore, 42% higher year-on-year. The June quarter FY24 results compendium for its portfolio of listed companies was released today.
The core infrastructure and utility platform, which generates stable and assured cashflows, accounted for 86% of the total portfolio EBITDA and stood at INR 20,233 crore. This gives a high level of stability and multi-decadal earnings predictability and visibility. The robust profits have resulted in the portfolio gaining a very strong liquidity position. The cash balance at the end of June 2023 was INR 42,115 crore, 4.2% higher than a quarter ago.
The success of the incubation story continued under Adani Enterprises. Airports, green hydrogen, and other businesses under the flagship incubator saw their profits almost double year-on-year. With an EBITDA of INR 1718 crore, these businesses contributed 7% to the portfolio EBITDA.
The robust portfolio performance was primarily driven by the renewable power business under Adani Green, infrastructure businesses under Adani Enterprises, and cement businesses under Adani Cement. Adani Green reported an EBITDA of INR 2,200 crore, a 67% rise Y-o-Y. This was on the back of an increase in operational capacity by 43% to 8,316 MW. The adjacent cement business also showed a strong operating performance because of cost optimization and improving synergies. EBITDA per tonne increased to INR 1253 from INR 888 in the June 22 quarter and INR 1079 in the March 23 quarter. As a result, EBITDA of the cement business grew 54% Y-o-Y to INR 1,935 crore.
Strong financial performance delivered across portfolio
| Sector | Q1FY24 EBITDA | Q1FY23 EBITDA | Growth | % of Total |
| Utility | 14,453 | 10,378 | 39% | 61.4% |
| Transport | 4,062 | 3,776 | 8% | 17.3% |
| AEL-Infrastructure business | 1,718 | 877 | 96% | 7.3% |
| A. Sub-total (Infrastructure) | 20,233 | 15,031 | 34% | 86.0% |
| Adjacencies (Cement) 1 | 1,935 | NA | – | 8.2% |
| B. Sub-total (Adjacencies) | 1,935 | – | – | 8.2% |
| AEL- Existing businesses | 1,364 | 1,551 | (12%) 3 | 5.8% |
| FMCG2 | 177 | 491 | (64%)4 | – |
| C. Sub-total (Others) 2 | 1,364 | 1,551 | (12%) | 5.8% |
| Portfolio EBITDA (A+B+C) 2 | 23,533 | 16,582 | 42% | 100% |
- EBITDA for the cement business has only been included in the portfolio in Q1FY24 numbers.
- FMCG EBITDA is not included in the total portfolio EBITDA, as AWL’s share of profit is included in AEL’s existing businesses’ profit.
- Due to correction in coal prices and volume stabilization
- EBITDA was impacted on account of high-cost inventory, TRQ disparity, and losses in Bangladesh operations.
Business-wise summary
Adani Enterprises Ltd.
- Airports business witnessed a 27% y-o-y growth in passengers to 21.3 million.
- Road business constructed an additional 79.8 lane km.
- Solar module volumes were up 87% to 614 MW.
- Data center business: The 17 MW facility in Chennai is fully operational.
- Mining services’ production volume stood at 6.3 MMT.
- Volumes for Integrated Resource Management stood at 17.8 MMT.
Adani Green Energy Ltd
- Operational capacity increased by 43% to 8,316 MW. This included 1,750 MW of solar-wind hybrid, 212 MW of solar, and 554 MW from wind power plants.
- Solar portfolio’s capacity utilization improved by 40 basis points Y-o-Y to 26.9%.
- The wind portfolio’s capacity utilization was reduced by 830 basis points y-o-y to 38.7%.
- The hybrid portfolio’s capacity utilization was at 47.2%.
Adani Energy Solutions
- The total transmission network increased to 19,778 circuit km in addition to 550 circuit km.
- Sold units increased by 7.61% y-o-y to 2,754 million units.
- Received letter of agreement (LOA) for three smart metering projects catering to 9 million consumers in Andhra Pradesh through 2.7 million smart meters.
Adani Gas
- Added seven CNG stations, taking the total to 467 now.
- 141 EV charging points were installed across multiple strategic locations.
- The total number of homes served through PNG (piped natural gas) increased by 1.24 lakh, catering to more than 7 lakh households.
- CNG volumes increased by 18% y-o-y on account of increased network and reduction in CNG prices.
- PNG volumes decreased by 6% y-o-y on lower offtake by consumers due to alternative fuel prices.
Adani Ports & SEZ
- Highest-ever quarterly cargo volume of 101.4 MMT, 12% higher year-on-year.
- Market share increased by 200 basis points in the quarter to 26%.
- Domestic cargo volumes recorded an 8% year-on-year increase, a 3x industry growth.
- Concluded Myanmar asset sale and acquisition of the Karaikal Port.
- Concluded the tender of $130 million buyback of outstanding debt.
Adani Power
- Two units, totaling 1,600 MW, of the Godda ultra-supercritical power plant, were commissioned during the quarter.
- Sales increased by 7% y-o-y to 17.49 BU.
- Consolidated PLF for the quarter improved to 60.1% against 58.6% in the corresponding quarter last year.
Adani Wilmar
- Crossed 1.49 MMT volumes during the quarter, delivering a 25% Y-o-Y growth.
- The food and FMCG segment recorded revenues of INR 1,100 crore, a 28% Y-o-Y growth.
Adani Cement Business – Ambuja / ACC
- Sales volume increased 9% Q-o-Q to 15.4 MMT.
- EBITDA per tonne improved 16% Q-o-Q to INR 1,253 led by business excellence in operations, cost efficiencies, and synergies.
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