The Metals and Mining industry is a crucial sector, contributing approximately 2-3% to global GDP. In 2022, the industry’s market size reached around $1.5 trillion, with major players extracting essential metals like copper, aluminum, and gold. The sector is vital for infrastructure development, particularly in emerging economies, where steel demand is projected to grow by 10% annually through 2030.
With a market capitalization of Rs 3.54 lakh crore, the shares of Adani Enterprises Ltd were trading at Rs 3,109.45 per share, increasing around 0.17 percent as compared to the previous closing price of Rs 3,104.20 apiece.
Financial performance:-
The company’s revenue surged 12%, increasing from Rs 22,644 crore in Q1FY24 to Rs 25,472 crore in Q1FY25. However, net profit magnified multifold times by 161%, jumped from Rs 677 crore to Rs1,772 crore, indicating strong revenue and profitability growth during the same period.
Adani Enterprises Limited (AEL) reported its highest-ever quarterly EBITDA of ₹4,300 crores, a 48% YoY growth. Consolidated profit before tax surged 107% to ₹2,236 crores, with total income rising 13% to ₹26,067 crores. Incubating businesses contributed 62% of overall EBITDA, up from 45% in Q1 FY24.
The incubating businesses showed strong performance, with ANIL’s Green Hydrogen Ecosystem revenue surging 138% to ₹4,519 crores, and EBITDA growing 3.6x to ₹1,642 crores. The airport business also saw a 27% revenue rise, while total income from incubating businesses increased 63%, driving PBT growth by 208%.
Revenue Split:-
In FY23-24, Adani Enterprises’s total segment revenue reached ₹34,896 crore, a 25% increase from ₹27,928 crore in FY22-23. The majority of revenue, 53%, came from Integrated Resources Management, followed by mining services at 2%, commercial mining at 5%, new energy ecosystem at 8%, Airport at 6.1%, road at 6.5% and other sources contributing the remaining 19%.
Operational performance:-
In its Green Hydrogen Ecosystem, Adani Enterprises achieved full capacity at its 4 GW solar manufacturing unit, with module sales rising 125% YoY to 1,379 MW. Wind turbine manufacturing reached final type certification for 3 MW, while the airports handled over 90 million passengers in the last year.
In infrastructure, 730 lane kilometers of roads were built, a record quarterly high, and the Greenfield Ganga Expressway saw significant progress. The company also saw a 49% increase in mining services volume to 9.4 million metric tons, while revenue from mining and IRM businesses totaled ₹12,057 crores.
Capex and Funding:-
Adani Enterprises continues its capex for roads, airports, and new industries, with ₹0.4 billion allocated to roads in Q1. The company achieved financial closure for its ₹14,000 crore Coal to PVC project with SBI and announced a QIP program to support equity funding for Adani New Industries.
Margin Insights:-
The ANIL business maintains margins above 40%, bolstered by a rise in export orders. With a robust order book, these sustainable margins are expected to remain strong, ensuring consistent profitability and growth in the company’s green hydrogen and renewable energy ventures.
Future Outlook:-
Adani Enterprises plans to expand its green hydrogen capacity to 10 GW by FY26 while ramping up wafer production to achieve full operational capacity soon. The data center business is focusing on hyperscalers to meet growing AI computing demands, positioning for future growth in technology infrastructure.
Company Profile:-
Adani Enterprises Limited operates with various businesses spanning across integrated resource management, mining services and commercial mining, new energy ecosystem, data centers, airports, roads, copper, digital, food Fast-Moving Consumer Goods (FMCG), and others.
Written by:- Abhishek Singh
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