Adani Ents Quarterly Profit Doubles On Airports Business

Consolidated net profit for the full fiscal more than trebled to ₹2,421 crore from ₹787.7 crore in the previous fiscal, but still missed analysts’ estimates of ₹4201 crore by a wide margin.

“The past year’s results represent indisputable evidence of the strength and resilience of the Adani Group’s operational and financial performance," Gautam Adani, chairman of Adani Group, said in a release.

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“Our mega-scale infrastructure project execution capabilities and our O&M management skills, which are comparable to the best in the world, are strengths that we continue to derive from the Adani portfolio’s diversity to create reliable long-term value for all our investors," Adani said.

Adani group’s listed flagship’s total income almost doubled to ₹1.38 trillion during FY23 from ₹ 70,432.69 crore in FY22. Bloomberg estimates had forecast total annual revenues for the year at ₹1.49 trillion.

However, the company’s total expenses also doubled at ₹1.34 trillion in FY23 compared with ₹69,480.64 crore during FY22.

For the March quarter, AEL’s total income increased by 26% to ₹31,716 crore on a year-on-year basis on the back of the group’s performance in the airports business.

The company’s board, on Thursday, recommended a final dividend of ₹1.20 per equity share each for FY23. The company will hold its annual general meeting on 18 July to consider the resolution.

The company’s net worth has risen to ₹37,890 crore as at the end of March from ₹26,928.37 crore at March end of last year.

During the March quarter, Adani Airports Holdings Ltd handled at least 21.4 million passengers, up by 74% y-o-y. The airport arm witnessed a 56% rise in air traffic movements at 149,400 and handled 180,000 MT of cargo (up by 14% y-o-y).

Adani group had an eventful year in FY23. During the year, AEL issued 40.19 million new shares for ₹7,7001 crore (through preferential allotment route) to International Holding Company (IHC group), Abu Dhabi, on 12 May 2022.

And, during the March quarter, Hindenburg Research, a US-based short seller, issued a scathing report alleging stock manipulation and accounting fraud against some of the Adani group entities, which have been refuted by AEL. Adani Enterprises shares plummeted 54.6% in the March quarter but have recovered some ground since.

“[I]n the context of the short seller’s report, there is a petition filed in the Supreme Court, and the Securities and Exchange Board of India is examining the compliance of laws and regulations by conducting enquiries to the group’s listed companies," said AEL in the filing.

At the end of FY23, AEL’s net cash from operating activities stood much higher at ₹17,626.46 crore from ₹1,385.28 crore at the end of March 2022.

The holding company of the embattled Adani group on Thursday revealed in an exchange filing that during FY23, certain investigations initiated by the Central Bureau of Investigation (CBI), the Enforcement Directorate and the Ministry of Corporate Affairs against AEL’s step-down subsidiary—Mumbai International Airport Ltd (MIAL), its holding company GVK Airport Holdings Ltd and the erstwhile promoter directors of MIAL for the period prior to 27 June 2020.

The agencies are yet to conclude their investigations and related proceedings.

During the March quarter, based on CBI’s submissions, the case was transferred to the jurisdictional magistrate court. Subsequently, in February 2023, the CBI filed a charge sheet with the Mumbai magistrate court against accused entities, including MIAL and the erstwhile managing director.

Among others, it was alleged in the charge sheet that the funds aggregating ₹846 crore were diverted from MIAL through false contracts that are currently included in property, plant and equipment at a net book value of ₹595 crore. The company’s operating margin during FY23 improved slightly to 6.44% from 5.35% in FY22.

AEL said during FY23, it has issued secured market-linked non-convertible debentures of ₹790 crore in tranches and has maintained a security cover of over 100% on the principal amount as on 31 March 2023 by way of a pledge of shares of one of its subsidiaries Adani Road Transport Ltd. There is no interest or principal payment falling due in the next three months ending 30 June.

Adani Ports & SEZ Ltd announced a bond buyback plan in April to signal that its liquidity position is comfortable. Adani Transmission Ltd, is planning to buy back as much as $100 million of bonds issued by one of its units, Bloomberg reported Thursday.