Adani group stock jumps after company’s net profit increases by 660% YoY

Adani group stock jumps after company’s net profit increases by 660% YoY
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Adani group stock jumps after company’s net profit increases by 660% YoY

The conglomerate’s extraordinary profit jump stems from strategic diversification, operational efficiency, and robust growth across various business segments. Cost control measures, expanding market presence, and successful implementation of growth initiatives contributed significantly to this remarkable performance.

Stock Movement:

After announcing its quarterly results, Adani Enterprises Limited‘s share has surged by 2.3%. The stock opened at ₹2,803 and is currently trading at ₹2,842, with a high of ₹2863 and a low of ₹2,732. The market capitalisation now stands at approximately ₹3,28,000 crore.

Reason for Rise:

Adani Enterprises achieved remarkable growth primarily due to efficient cost management and strategic business expansions. The company’s infrastructure division witnessed a 25% revenue surge, driven by increased airport passenger traffic and cargo volumes. The integrated resources segment benefited from favorable commodity prices, contributing significantly to profit margins. Additionally, the green hydrogen and data center initiatives showed promising results with a 15% revenue uptick.

Q2 FY25 Result Walkthrough:

Coming into the financial analysis of Adani Enterprises, the company’s consolidated revenue from operations increased by 15.7 percent YOY, from Rs. 19,546 crore in Q2 FY24 to Rs. 22,608 crore in Q2 FY25. The company demonstrated robust growth across its core business segments.

Adani Enterprises accumulated revenue primarily from its diversified portfolio, with the infrastructure segment contributing 45% and the integrated resources segment adding 35% in Q2 FY25. The remaining 20% came from emerging businesses including green hydrogen and data centers. The company earned significant revenue from domestic operations at Rs. 18,086 crore and international business at Rs. 4,522 crore in the same quarter.

In Q2 FY25, Adani Enterprises consolidated net profit showed remarkable growth, increasing by 660% YOY, reaching Rs. 1,741 crore compared to Rs. 228 crore during the same period last year. The operating profit (EBITDA) demonstrated strong performance with a 46% increase to Rs. 4,354 crore from Rs. 2,979 crore a year ago.

The EBITDA margin improved significantly, rising by 430 basis points to reach 16.7% compared to 12.4% in Q2 FY24. This improvement reflects the company’s successful cost optimization strategies and operational efficiency measures implemented during the quarter.

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Company Profile:

Adani Enterprises Limited (AEL) is the flagship company of the Adani Group, one of India’s largest business conglomerates. The headquarters is in Ahmedabad, Gujarat. The company operates as an incubator, establishing diverse businesses in critical sectors that strengthen the nation’s infrastructure.

The company has evolved from a trading house to a prominent business incubator, transforming ideas into mega-scale infrastructure businesses. It ranks among India’s top 10 most valuable companies by market capitalization and operates across seven countries. Adani Enterprises manages seven operational airports handling approximately 80 million passengers annually.

The company operates through multiple strategic business verticals including Airports, Roads, Data Centers, Solar Manufacturing, Mining, Defense & Aerospace, and Green Hydrogen. Its integrated resource management arm is India’s largest coal supplier in the private sector, while Adani Solar is India’s first solar cell and module manufacturer. 

Recently, the company has made significant strides in emerging sectors like data centers and green hydrogen production, positioning itself as a leader in sustainable infrastructure development. The company’s focus on emerging sectors like digital technology and green hydrogen positions it well for future growth. 

Written By Fazal Ul Vahab C H

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