Showing a sharp recovery in the previous quarter, Adani Enterprises Ltd posted its Q3 results on February 1, with a 130 percent rise in profits for the quarter ending in December 2023. Most of the earnings were from the newer businesses of the company, showcasing immense growth.
The Q3 profits of billionaire Gautam Adani’s conglomerate jumped to ₹1,888 crore, more than doubling from the previous year. Subsequently, the net profits in the December 2022 quarter were ₹820 crore.
While green hydrogen business in the new energy vertical of the company saw more than 4x rise in pre-tax profit to ₹1,655 crore, road business EBITDA more than doubled to ₹910 crore. Airport business EBITDA was up 27 per cent at ₹1,774 crore.
Adani Enterprises reported a higher net profit than its subsidiaries since it is the business incubator of the group and houses data centre, new energy business, airports, road, mining and minerals and copper unit.
The EBITDA of Gautam Adani’s conglomerate rose 89 per cent to ₹3,717 crore in the third quarter. Cash accruals more than doubled to ₹2,680 crore. The company filings said, “Wind manufacturing division began production of wind turbine generator (WTG) and during the quarter it produced 15 and supplied 7 sets.”
“Adani Enterprises has had a robust third quarter, with two of our major incubating businesses picking up momentum,” said Gautam Adani, Chairman of Adani Group.
“Our ongoing commitment to enhancing customer satisfaction and redefining the overall consumer experience at our airports remains steadfast. We are also pleased with the pace of our advance in establishing a fully integrated manufacturing chain for green hydrogen production,” he said.
Adani-Hindenburg controversy
This sharp rise in profits for Adani Enterprises is being witnessed after a big win for the Adani Group after Supreme Court ruled in the company’s favour, dismissing the need of any additional investigation on the claims of the Hindenburg report.
The US-based investment research firm named Hindenburg Research last year had made several claims against Gautam Adani and his company, alleging his involvement in stock manipulation and accounting fraud scheme over the last few decades.
While India’s market regulator SEBI is already investigating the claims made by Hindenburg, the Supreme Court ruled that no additional probe is needed in the case. After this, the share prices of Adani companies skyrocketed, adding billions to Gautam Adani’s net worth.
(With inputs from PTI)