Source: Moneycontrol
The Adani Enterprises Ltd (AEL), which is the flagship company of the Adani Group, put forth an outstanding performance in Q4 and FY25, with huge one-time gains supporting the results. The net revenue fell sharply, but growth in profitability was impressive.
Highlight for the Q4 FY25
The net profit was reported to have grown by 753% year-on-year in respect to the consolidated net profit, amounting to ₹3,844.91 crores for Q4 FY25 in comparison with ₹451 crores for the same period last fiscal. The rise in net profit was attributed to an exceptional gain of ₹3,286 crore, the company said in an exchange filing. The company’s net profit declined severely to just ₹58 crore during the last quarter, which was attributed to the poor performance of its coal trading division.
Revenue: Consolidated revenues for operations during Q4 FY25 stood at ₹26,965.86 crore, reflecting an 8% down from that of the previous year Q4 FY24 of ₹29,180 crore. However, sequentially, it showed 18% growth from revenues posted at ₹22,848 crores in the previous.
EPS: For the fiscal year FY25, AEL’s earnings per share stood at ₹60.55, reflecting a strong increase in profitability.
Segmental Performance Overview
Coal Trading: The coal trading arm found itself constrained through the quarter with a 47% reduction in profit to ₹8.33 billion as a result of coal price drop and reduced demand for imports. The segment also saw a 45% decline in revenue.
New Energy: The new energy division of AEL, comprising solar and wind, boosted its pre-tax profit by 92% to a staggering ₹9.94 billion. This division now constitutes little over 13% of the company’s overall revenue; underscoring AEL’s sharpening focus on renewable energy.
Declaration of Dividend
The Board of Directors is recommending a final dividend of ₹1.30 for every fully paid-up equity share of the company for FY25, which is subject to the approval of the next AGM and is part of the ongoing commitment of the company toward returning value to its shareholders.
Share Prices are in Performance
With the Maharashtra Day market closure impending, Adani Enterprises shares closed at ₹2,297.70 on Wednesday on the Bombay Stock Exchange (BSE), thus reflecting the overall investor confidence in the company’s strong performance.
