Adani Enterprises Limited is a key player in India’s industrial landscape and continues to make waves with its diverse portfolio and strategic investments. As the company releases its latest financial quarterly results, investors and analysts are eager to understand which sectors are driving the company’s growth. In this article, we explore Adani Enterprises’ revenue breakdown, examining the performance of its various business segments and their contributions to the company’s overall financial health.
Industry Overview
The Indian industrial landscape is rapidly evolving, driven by innovation and infrastructure development. The government emphasizes sustainable practices, notably in the energy and transportation sectors. Renewable energy efforts are gaining momentum to minimize carbon footprints and improve energy security.
The logistics sector is growing, with substantial expenditures in road, rail, and air transportation. This expansion improves connections and stimulates economic activity across areas. Digital transformation is reshaping industries, with data centers emerging as crucial components for technological advancement.
Company Overview Of Adani Enterprises
Adani Enterprises was founded in 1988 by Gautam Adani, a first-generation billionaire and founder. It is the flagship company of the Adani Group. Adani Enterprises Limited started as a commodity trading company but has grown into a major multinational holding company. The company was listed on the stock market in 1994. It has evolved into an incubator and holding company with diverse business interests.
Note: If you want to learn Candlesticks and Chart Trading from Scratch, here’s the best book available on Amazon! Get the book now!
Adani Enterprises is one of the fastest-growing diversified businesses, providing an extensive range of products and services. It operates across diverse sectors such as mining, power generation, renewable energy, and infrastructure development. The company has expanded its global presence, establishing operations in several countries. Its portfolio includes businesses in airports, data centers, defense and aerospace, and integrated resource management.
Segment Analysis and Revenue Breakups of Q1 FY25
AEL is one of the largest Indian conglomerates with operations across multiple industries such as airports, data centers, defence & aerospace, edible oil & foods, agro, integrated resources management, mining services, road, metro & rail, solar manufacturing, and water. The below chart shows Adani Enterprises Limited’s portfolio of operations.
Adani New Industries Limited (ANIL)
Adani New Industries Limited (ANIL) is a subsidiary of Adani Enterprises. It is developing a comprehensive platform for green hydrogen production and is located in Mundra. It focuses on solar, wind, and Electrolyser manufacturing to produce green hydrogen and downstream products.
The company is developing an integrated green hydrogen ecosystem to support up to 1 MMTPA of hydrogen production and 5.6 MMTPA of green ammonia by the year 2030 and 3 MMTPA over the next 10 years.
Adani Solar was established in 2016. ANIL aims to achieve a fully integrated solar manufacturing capacity of 10 GW, 5 GW of wind turbine generators (WTG), and 5 GW of Electrolyser manufacturing facilities.
ANIL Ecosystem revenue has increased from ₹1,898 crore in Q1 FY24 to ₹4,519 crore in Q1 FY25, which has grown by 138%. The EBITDA of the ANIL Ecosystem has risen by 3.6x as compared to Q1 FY24, which is from ₹355 crores to ₹1642 crores in Q1 FY25.
Adani Airports Holdings Limited (AAHL)
Adani Airports Holdings Limited (AAHL) manages and operates seven major airports across India, including Mumbai, Ahmedabad, and Lucknow. It has plans to expand to eight airports by adding the Navi Mumbai International Airport. The company plans to involve a transition to 100% renewable energy at six public-private partnership airports by 2026.
Adani Airport’s revenue has grown by 27%, from ₹1,711 crore in Q1 FY24 to ₹2,177 crore in Q1 FY25. The EBITDA of Adani Airports has increased from ₹511 crore to ₹682 crore in Q1 FY25, which has grown by 33%.
Adani Integrated Resource Management (IRM)
Adani Integrated Resource Management (IRM) manages resource procurement and logistics using a comprehensive “door-to-door” delivery model, which encompasses sourcing, logistics management, and inland transportation. IRM plans to grow its market by using an online trading platform and aims to have a balanced customer mix of private and public sector clients.
Adani Integrated Resource Management (IRM) revenue has dropped by 25.54%, from ₹15,042 crore in Q1 FY24 to ₹11,201 crore in Q1 FY25. The EBITDA margin of the company has also decreased from ₹1,000 crore in Q1 FY24 to ₹990 crore in Q1 FY25.
Adani Mining Services
Adani Mining Services provides comprehensive mining solutions, including contract mining and production-related services, focusing on the coal and iron ore sectors. The company plans to expand operations to six coal mines and one iron ore mine in India by FY 2024-25, which will emphasize sustainable and efficient mining practices.
Adani Mining Services revenue has increased from ₹608 crore in Q1 FY24 to ₹856 crore in Q1 FY25, which has grown by 40%. The EBITDA margin has surged by 43%, from ₹242 crore to ₹347 crore in Q1 FY24.
Adani Data Centers
Adani Data Centers has operated under AdaniConneX. It is a 50:50 joint venture between the Adani Group and EdgeConneX. It focuses on providing customizable data center solutions across India, leveraging global expertise and local infrastructure. The company aims to develop 1 GW of data center capacity by 2030. It has ongoing projects in Noida and Hyderabad set for completion by FY 2025. The order book of data centers in FY24 stands at 110 MW, and the cumulative order book stands at more than 210 MW.
Financial Analysis Of Adani Enterprises
Coming into the financial analysis of Adani Enterprises Limited over five consecutive quarters, the company’s revenue has increased by 12.49%, from ₹22,644 crores in Q1 FY24 to ₹25,472 crores in Q1 FY25.
The revenue of the company fluctuated over the last five quarters. As compared to the previous quarter, revenue has dropped by 12.71% from ₹29,180 crore in Q4 FY24 to ₹25,472 crore in Q1 FY25.
The net profit of Adani Enterprises Limited has increased from ₹677 crore in Q1 FY24 to ₹1772 crore in Q1 FY25, which has grown by 161.74% as compared to the same quarter last year.
EBITDA has grown at a rate of 48% year over year. The company’s operating profit margin has increased over the last five years. It has grown from 8.05% to 10.05% in Q1 FY25 as compared to the previous quarter.
Also read…
Capex Expenditure Of Adani Enterprises
Adani Enterprises Limited is looking to invest money in capital expenditures of ₹80,000 crores in FY25. It includes the ANIL and Airport businesses, which are major parts of Capex, which is to be almost ₹50,000 crores. The third investment will be in roads, with a CapEx of ₹12,000 crore allocated to the Ganga Expressway.
Additionally, they are launching a PVC project, which will have a CapEx of around INR 10,000 crore. The remaining funds will be invested in the data center, which is approximately ₹ 5,000 crores. This can be seen in the next chart of the pie diagram.
Future Plans Of Adani Enterprises
- The company expects continued 20% growth in passenger movement. The new Navi Mumbai airport is expected to be operational by the end of FY25.
- The company aims to maintain its financial health. It will keep its net debt to EBITDA ratio below 5x and expects to be less than 4x for FY25. The company is bringing in additional equity if required to maintain this target.
- The company is planning to increase its coal production in Australia from 11.2 million tons to 14-15 million tons. In mining services (MDO), they plan to grow from 30.9 million tons in FY24 to 45-50 million tons in FY25.
- The company has completed the projects of AdaniConneX in Noida, Hyderabad, and Pune. Their order book has reached 210 MW, up from 112 MW reported in Q3.
- Adani New Industries Limited aims to grow to 10 GW in integrated module manufacturing capacity. They also plan to have 3 GW of capacity in wind turbine manufacturing.
- The company’s new copper plant started operations in March 2024. They plan to commission all units by the end of FY25 and reach a peak capacity of 0.5 million tons in FY26.
Conclusion
In conclusion, Adani Enterprises Limited remains strong even though its revenue has decreased. The company’s net profit and EBITDA margins have improved significantly. The financial strength of the company is evident in its growing profits and expanding operations. However, increased debt levels require attention.
The company’s plans include substantial capital expenditure across various sectors. The company aims to maintain financial health while pursuing ambitious growth strategies in renewable energy, mining, and infrastructure development. What do you think about Adani Enterprises Limited? Let us know in the comments below.
Written By Nikhil Naik
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
