Adani Group’s Resilient Rise: Record Profits, Diverse Ventures, And Strategic Growth

Adani Group companies reported a record 45% increase in pre-tax profit (EBITDA), reaching ₹82,917 crore for FY24. The conglomerate, spanning from apples to airports, made a significant recovery after being impacted by a critical report from a US short seller that had affected the market value of its listed firms. Throughout 2023-24, Adani Group concentrated on managing debt, reducing founder share pledges, and consolidating its core business areas.

The compound annual growth rate (CAGR) for profit growth over the past five years has been 54%. 84% of EBITDA is derived from ‘core infrastructure’ businesses, which generate highly predictable cash flows.

Operational Highlights

The Adani Group announced that cash profit or funds flow from operations (FFO) reached ₹56,828 crore, marking a 51% year-on-year increase. This growth was achieved through a disciplined investment strategy that ensured high conversion rates. Over three decades, the Adani Group has built a robust asset base valued at ₹4,78,137 crore, supporting resilient critical infrastructure and serving a consumer base of 350 million users.

Consumer Base Expansion And Asset Growth

The platform’s consumer base has expanded to 350 million, and franchises are rapidly growing across various sectors, such as airports, electricity distribution, smart metering, gas distribution, and direct-to-consumer digital platforms.

Total gross assets increased by ₹65,901 crore, reaching ₹4,78,220 crore. Adani Enterprises Ltd and Adani Green Energy Ltd witnessed the highest gross asset additions, accounting for 61%. The gains from these additions are expected to be reflected in FY25 earnings.

The Adani Group emphasised maintaining high liquidity, with a cash balance covering 24.8% of gross debt, totalling ₹59,791 crore.

Strategic Initiatives and Acquisitions in FY 2024

In FY 2024, flagship company Adani Enterprises commissioned various projects, including an ingot wafer unit for solar module manufacturing, a wind turbine facility, and a copper smelter. Additionally, Adani Cement completed the acquisition of Sanghi Cement, while promoters injected additional funds into the company.

Recent Investments

Adani Ports acquired Gopalpur port, Adani Power commissioned a 1.6 GW Godda power plant, Adani Green added 2.8 GW of renewable energy capacity, and a solar power project in Khavda, Gujarat, commenced operations. Adani Energy Solutions also installed 1,244 circuit kilometres of transmission lines.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.