Adani Enterprises Q3: Debt-Interest Coverage Ratio Stable; New Businesses Add Rs 473 Crore To Bottomline

Adani Enterprises Ltd.'s top line for the three months ended December stood at Rs 22,848 crore, an increase of 1.1% from the preceding quarter, while its operating income rose 26% to Rs 12,377 crore for the first nine months of the ongoing financial year.

The net profit in the third quarter declined despite a stable operating performance largely on account of non-cash cost items of Rs 1,542 crore.

The Adani Group flagship's earnings had to account for a mark-to-market foreign exchange loss of Rs 1,542 crore on the loan provided to its Australian subsidiary because of Rupee depreciation during the quarter.

Adding back this non-cash cost item, profits would have stood at Rs 2,118 crore versus Rs 2,360 crore in the same period last year. Further, during the quarter, the new businesses of Adani Enterprises added Rs 473 crore to the bottomline.

In the December quarter, the company’s debt rose driven by the new projects that were undertaken. However, the debt and interest coverage ratio remains stable.

The rise in earnings before interest, tax, depreciation and amortisation was driven by the performance of ANIL Ecosystem and airports, the ports-to-power conglomerate said in a media statement. The company's consolidated revenue rose 6% to Rs 72,763 crore, while profit before tax increased 21% to Rs 5,220 crore.

Adani Group CFO explained the third quarter performance further. Writing on Linkendin, Jugeshinder (Robbie) Singh said, "The point to note in results is EBITDA and PBT for the 9 months is almost same as the full year Mar 2023 results. Additionally, for shareholders EPS for these 9 months is 0.27 per share which is also same as it was for the full 12 months last financial year. Thus EBITDA and PBT growth is full translating to EPS growth!"

"This exceptional nine-month performance underscores Adani Enterprises Ltd’s position as a powerhouse for nurturing transformative infrastructure and energy transition sectors," said Adani Group Chairman Gautam Adani.

"Strong growth across our incubating businesses, from energy transition to logistics and adjacencies, highlights the immense potential of our core plus portfolio. These results are a testament to our focus on execution, operational excellence, innovation and sustainability as we continue to set new benchmarks across sectors," Adani said.