Adani Enterprises ’ shares rose sharply reacting to the Q3 results, jumping by as much as 10% before closing the day with gains of 1.9%.- The company reported a 42% year-on-year growth in revenue driven by its new energy, airports and integrated resource management businesses.
Gautam Adani , the company’s founder and chairman noted that the current market volatility is ‘temporary’.
At the end of trading, however, the stock lost most of its gains to close 1.9% in the green. In a bid to reassure investors, Gautam Adani, the company’s founder and chairman, maintained that the current market movement is temporary. “The current market volatility is temporary; Adani Enterprises will continue to work with the twin objectives of moderate leverage and looking at strategic opportunities to expand and grow,” he said.
Adani Enterprises has come under intense scrutiny since January 24 due to the$4 which levelled allegations of stock manipulation and accounting fraud.
While the Adani group has denied these allegations, its combined market capitalisation has taken a beating,$4 after a 55% decline.
Adani group’s combined market capitalisation stood at ₹9.89 lakh crore on Tuesday, down from ₹21.94 lakh crore on January 24.
It reported a 42% year-on-year growth in its topline, with a revenue of ₹26,612 crore in Q3. Driving the topline growth were the company’s new energy, airports, and integrated resource management businesses.
“Our fundamental strength lies in mega-scale infrastructure project execution capabilities, organisational development and exceptional O&M management skills comparable to the best in the world,” Adani said.
The company’s net margins also improved on both sequential as well as year-on-year basis. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 101% to ₹1,968 crore, slightly ahead of Bloomberg estimates of ₹1,952 crore.
Adani Enterprises’ Q3 in numbers:
Source: Company reports
Adani Enterprises’ established businesses, which include mineral supply, new energy and mining, as well as incubating businesses like airports, roads, and data center operations, registered healthy growth during the quarter.
The integrated resource management (IRM) business, which includes supply of coal and other vital minerals, is Adani Enterprises’ largest segment, contributing 66% to the company’s overall revenue in Q3.
While it was the slowest to grow amongst the four segments identified by Adani Enterprises, it still grew at a fast pace of 38% YoY. Other segments like mining, new energy and airports more than doubled their revenue in Q3 when compared to the same period last year.
During the December quarter, Adani Enterprises’ airports handled 40% more passengers at 20.3 million, while the total cargo handled stood at 1.8 lakh metric tonne.
Segment-wise revenue:
Source: Company reports
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