Adani Enterprises to demerge food FMCG biz, integrate it with Adani Wilmar

Learn Team
August 2, 2024

Ahmadabad based Flagship Company of billionaire Gautam Adani's, Adani Enterprises reported a two-fold surge in net profit to Rs, 1,454 crores in Q1 2024-25, compared to Rs.674 crores in the corresponding period last year. Incubated business witnessed 2x increased in profit before tax as compared to just 19% growth in PBT from established businesses. The surge in net profit was boosted by solid revenues at its airports and mining businesses and by growth in the new energy business, which outweighed weakness in coal trading.

At operational level, the company reported 13% rise in year over year consolidated revenue from operations at Rs.26067 crores for the Q125, compared to Rs.23016 crore in the year period. Out of total revenue, the company reported 63% rise in income from incubated business form Rs. 5709 crores Q124 to Rs. 9342 crores in Q125.

Companies’ EBITDA during Q125 rose by 48% to Rs.4,300 crore, compared to Rs.2,897 crore in the same period last year. EBITDA rose on account of strong operational performance by ANIL Ecosystem & Airports.

Margin rose to 14.6% compared to 11.5% in the year-ago.

Adani New Industries Ltd (ANIL), the company's new energy business unit, posted a 3.6x jump in EBITDA to Rs.1,642 crore on growth in solar manufacturing and wind turbine businesses. Whereas revenue saw a jump of 138%. The airports business saw a 33% rise in pre-tax earnings to Rs.682 crore. The company's mainstay coal trading business revenue fell 34% to Rs.11201 crore due to lower coal volumes and prices. Mining services saw a 40% rise in revenue to Rs. 856 crores due to rising volumes. Companies’ net debt to EBITDA has been stabilizing from high of 5.2 in FY22 to 2.1 in Q125.

Adani Enterprises in an exchange filing said that it has approved the demerger of its food and FMCG businesses. These verticals will merge into Adani Wilmar, with AEL holding a 43.94% stake in Adani Wilmar through promoter entity Adani Commodities. Following the demerger, promoter stake in Adani Wilmar will fall to 76.76% from 87.87% currently, while public shareholding will increase to 23.24% from 12.13%. Post demerger, Adani Enterprises shareholders will receive 251 shares for every 500 shares of AEL or in that ratio.

Share of Adani enterprise is trading 0.82% lower and Adani Wilmar is trading 5% positive on following day.