Adani Enterprises shares gain on robust performance of airport arm

Shares of Adani Enterprises rose over 2% in early trade on Monday as investors cheered the robust performance of its airport arm, Adani Airport Holdings Limited (AAHL), in the financial year 2023-2024. The Adani Group flagship informed exchanges that AAHL handled an “impressive one million tonnes of air cargo” in FY24, underscoring its robust operational capabilities and strategic growth in the aviation industry.

Continuing its gaining streak for the fourth straight session, Adani Enterprises shares surged as much as 2.4% to ₹3,295 in opening trade today. The market capitalisation climbed to ₹3.7 lakh crore, with 0.55 lakh shares changing hands over the counter in the first hour of trade so far.

Early today, shares of Adani Enterprises opened higher at ₹3,290.70 after ending 1.15% higher at ₹3,218.70 on the BSE on Friday. The Adani group stock has risen 12% in four sessions.

Adani Enterprises stock touched its 52-week high of ₹3,743 on June 3, 2024, and a 52-week low of ₹2,142.30 on November 20, 2023. The counter has delivered 31% in the past one year; 14% in six months; and more than 16% in a month.

In an exchange filing on June 9, Adani Enterprises said that its subsidiary, AAHL, handled 10,13,115 metric tonnes of cargo in FY24, capturing a 30.1% market share. This was up 7% year-on-year compared to the previous fiscal, when the total cargo tonnage was 9,44,912 metric tonnes.

In FY24, AAHL's cargo operations were predominantly international, constituting 65% of the total cargo tonnage, amounting to 6,62,258 metric tonnes, up 9% YoY compared to the previous fiscal's 6,06,348 metric tonnes. “This showcases AAHL's efficiency in managing worldwide operations while maintaining a robust domestic presence,” the release notes.

As per the company, the cargo operations were driven by commodities, including automobiles, pharmaceuticals, perishables, electricals/electronics, and engineering goods. They were handled across the Chhatrapati Shivaji Maharaj International Airport (Mumbai), the Sardar Vallabhbhai Patel International Airport (Ahmedabad), the Chaudhary Charan Singh International Airport (Lucknow), the Thiruvananthapuram International Airport, the Mangaluru International Airport, the Lokpriya Gopinath Bordoloi International Airport (Guwahati) and the Jaipur International Airport.

The major international destinations for cargo included Germany, Netherlands, the United Arab Emirates, the United Kingdom and the United States of America, the release highlights.

Arun Bansal, CEO, AAHL, says “At Adani Airport Holdings Limited, we have been consistently setting new benchmarks for operational efficiency. The cargo terminals have achieved a remarkable milestone, handling over 1 million tonnes this fiscal year. This achievement solidifies our position as key facilitators in both international and domestic airfreight operations in India.”

Established in 2019, AAHL is India's largest airport infrastructure company, accounting for 23% of passenger footfalls and 30% of India’s air cargo traffic. It holds 74% in Mumbai International Airport Ltd, which in turn owns 74% in Navi Mumbai International Airport Ltd. The company manages eight airports - Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, Thiruvananthapuram, Mumbai, and Navi Mumbai. 

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