Adani Portfolio Delivers All-Time High Quarterly EBITDA Of Rs 23,532 Crore In Q1; Stocks Fall By 8%

The port-to-power empire, Adani Group registered an all-time high quarterly profit (EBITDA) to the tune of Rs 23,532 crore in the quarter ending June 30, 2023, rising by a whopping 42% YoY. The Group released the June quarter FY24 results compendium for its portfolio of listed companies on Wednesday. However, despite a stellar performance in Q1FY24, Adani Group's listed shares could not lure bulls and instead settled with sharp declines.

In a statement, Adani Group revealed that the core infrastructure and utility platform, which generates stable and assured cashflows, accounted for 86% of the total portfolio EBITDA and stood at Rs 20,233 crore. This gives a high level of stability and multi-decadal earnings predictability and visibility. The robust profits have resulted in the portfolio gaining a very strong liquidity position. The cash balance at the end of June 2023 was Rs 42,115 crore, 4.2% higher than a quarter ago.

Also, the success of the incubation story continued under Adani Enterprises. Airports, green hydrogen and other businesses under the flagship incubator saw their profits almost double year-on-year. With an EBITDA of Rs 1718 crore, these businesses contributed 7% to the portfolio EBITDA.

Further, the Group said that the robust portfolio performance was primarily driven by the renewable power business under Adani Green, infrastructure businesses under Adani Enterprises, and cement businesses under Adani Cement.

Meanwhile, Adani Green reported an EBITDA of Rs 2,200 crore, a 67% rise Y-o-Y. This was on the back of an increase in operational capacity by 43% to 8,316 MW. The adjacent cement business also showed a strong operating performance because of cost optimization and improving synergies. EBITDA per tonne increased to Rs 1253 from Rs 888 in June 22 quarter and Rs 1079 in March 23 quarter. As a result, EBITDA of the cement business grew 54% Y-o-Y to Rs 1,935 crore.

On Wednesday, Adani Enterprises stock settled with a decline of over 6.2% on BSE, while Adani Ports shed 3.3%, Adani Power dived 7.1%, Adani Transmission slipped by 7.7%, Adani Green Energy contracted by 4.3%, Adani Total Gas dropped by 2.8%, and Adani Wilmar shares plunged 1.08%. Further, Ambuja Cements' share fell by 2.3%, and ACC stock slid down by half a per cent.

Here are the key highlights of the Group's overall performance in Q1FY24:

Adani Enterprises:

- Airports business witnessed a 27% y-o-y growth in passengers to 21.3 million.
- Road business constructed an additional 79.8 lane km.
- Solar module volumes were up 87% to 614 MW.
- Data centre business: 17 MW facility at Chennai is fully operational.
- Mining services' production volume stood at 6.3 MMT.
- Volumes for Integrated Resource Management stood at 17.8 MMT.

Adani Green Energy:

- Operational capacity increased by 43% to 8,316 MW. This included 1,750 MW of solar-wind hybrid, 212 MW of solar and 554 MW from wind power plants.
- Solar portfolio's capacity utilization improved by 40 basis points Y-o-Y to 26.9%.
- Wind portfolio's capacity utilization reduced 830 basis points y-o-y to 38.7%.
- Hybrid portfolio's capacity utilization was at 47.2%.

Adani Energy Solutions:

- The total transmission network increased to 19,778 circuit km in addition to 550 circuit km.
- Sold units increased by 7.61% y-o-y to 2,754 million units.
- Received letter of agreement (LOA) for three smart metering projects catering to 9 million consumers in Andhra Pradesh through 2.7 million smart meters.

Adani Gas:

- Added seven CNG stations, taking the total to 467 now.
141 EV charging points were installed across multiple strategic locations.
- The total number of homes served through PNG (piped natural gas) increased by 1.24 lakh, catering to more than 7 lakh households.
- CNG volumes increased by 18% y-o-y on account of increased network and reduction in CNG prices.
- PNG volumes decreased by 6% y-o-y on lower offtake by consumers due to alternative fuel prices.

Adani Ports & SEZ:

- Highest-ever quarterly cargo volume of 101.4 MMT, 12% higher year-on-year.
- Market share increased by 200 basis points in the quarter to 26%.
- Domestic cargo volumes recorded an 8% year-on-year increase, a 3x industry growth.
- Concluded Myanmar asset sale and acquisition of the Karaikal Port.
- Concluded the tender of $130 million buyback of outstanding debt.

Adani Power:

- Two units, totalling 1,600 MW, of the Godda ultra-supercritical power plant, were commissioned during the quarter.
- Sales increased by 7% y-o-y to 17.49 BU.
- Consolidated PLF for the quarter improved to 60.1% against 58.6% in the corresponding quarter last year.

Adani Wilmar:

- Crossed 1.49 MMT volumes during the quarter, delivering a 25% Y-o-Y growth.
- Food and FMCG segment recorded revenues of Rs 1,100 crore, a 28% Y-o-Y growth.

Adani Cement Business - Ambuja / ACC:

- Sales volume increased 9% Q-o-Q to 15.4 MMT.
- EBITDA per tonne improved 16% Q-o-Q to Rs 1,253 led by business excellence in operations, cost efficiencies and synergies.