Adani Ports Q3 Profit Soars While Adani Enterprises Sees a Dip
In a tale of two contrasting fortunes, Adani Ports and Special Economic Zone (APSEZ) reported a robust 14% year-on-year increase in consolidated net profit for the third quarter of the financial year 2024-25, reaching an impressive Rs 2,518.39 crore. This substantial growth, as disclosed in the company’s regulatory filing on Thursday, was primarily fueled by higher income streams.
The largest integrated logistics player in India had previously recorded a profit of Rs 2,208.21 crore during the same quarter in the preceding year. This upward trajectory in net profit was accompanied by a significant rise in total income, which surged to Rs 8,186.90 crore from Rs 7,426.95 crore a year ago. However, this prosperous outcome was counterbalanced by a proportional increase in total expenses, escalating from Rs 4,588.10 crore to Rs 5,190.53 crore.
APSEZ Whole-time Director and CEO Ashwani Gupta expressed the company’s optimism by revising the FY25 EBITDA forecast upwards to a substantial range of Rs 18,800-18,900 crore, reflecting a strong outlook for the coming months.
Adani Enterprises Ltd (AEL), on the other hand, faced a starkly different scenario, as they reported a sharp decline in net profit for the quarter ending December 31, 2024. The company’s earnings plummeted to Rs 58 crore, marking a significant drop from the previous year’s profit of Rs 1,888 crore.
The revenue for AEL also experienced a notable 9% year-on-year decline, falling to Rs 22,848 crore in Q3FY25, as opposed to Rs 25,050 crore in Q3FY24. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) followed suit, declining by 4.8% to Rs 3,069.4 crore from Rs 3,225.7 crore in the corresponding period.
However, amidst this challenging landscape, AEL’s Consolidated EBITDA managed to surge by an impressive 29% to Rs. 12,377 crore, largely propelled by the stellar performance of the Adani New Industries Limited (ANIL) Ecosystem and Adani Airports. Additionally, the profit before tax (PBT) also saw a commendable 21% increase to Rs. 5,220 crore, showcasing the resilience embedded within AEL’s business model.
The divergent paths taken by Adani Ports and Adani Enterprises in their third-quarter results illustrate the diverse challenges and opportunities present in the economic landscape, depicting a nuanced narrative of success and setbacks in the corporate world. As the fiscal year progresses, both entities are poised to navigate the ever-evolving market dynamics, leveraging their strengths to navigate the uncertain terrains of the global business environment.
