Adani Enterprises Q1 profit surges 116%; to demerge food FMCG biz to Adani Wilmar

Adani Enterprises Ltd (AEL), the flagship of Adani Group, on Thursday reported robust earnings for the first quarter ended June 30, 2024, driven by strong performance of core infra businesses comprising ANIL ecosystem, airports, and roads. The billionaire Gautam Adani-led company also announced the demerger of the food FMCG business of AEL to Adani Wilmar to unlock value for its shareholders.

For the April-June quarter of FY25, Adani Enterprises posted a 115.8% jump in its consolidated net profit to ₹1,454.5 crore as compared to ₹673.9 crore in the year ago period.

The consolidated revenue from operation increased by 12.4% year-on-year (YoY) to ₹25,472.4 crore in Q1 FY25, primarily driven by strong operational performance by Adani New Industries Limited (ANIL) Ecosystem and airports, AEL says in an exchange filing.

On the operating level, EBITDA surged by 48% to ₹4,300 crore versus ₹2,897 crore in the corresponding period last year.

"Adani Enterprises is further expanding its position as India's leading business incubator and a global model in infrastructure development," says Gautam Adani, Chairman of the Adani Group.

"The substantial growth in our EBIDTA, driven by the exceptional performance of the ANIL ecosystem, our airport operations and our road construction business, underscores our commitment to operational excellence and sustainable value creation,” he adds.

AEL in its earnings report says that the emerging core infra businesses comprising of ANIL Ecosystem, airports and roads are consistently making significant strides in their operational performance. The contribution of these businesses to the overall EBIDTA has now increased to 62% in Q1 FY25 compared to 45% in Q1 FY24.

During the quarter under review, ANIL Ecosystem solar manufacturing and wind turbine businesses recorded highest-ever EBIDTA of ₹1,642 crore, up 3.6 times on YoY basis, contributing to 38% to total EBIDTA.

Demerger of food FMCG business

AEL also informed exchanges that its board approved the demerger of the company’s food FMCG business to Adani Wilmar along with its strategic investment in Adani Commodities LLP. Adani Commodities LLP is one of the promoter entities of Adani Wilmar and holds 43.94% shares in the company at the end of the June quarter.

The release notes that the food FMCG business has become self-sustained, performing well and poised for further growth under Adani Wilmar. The segregation would enable greater focus of the management in the food FMCG Business and other businesses, it adds.

 “For AEL, this arrangement will not only unlock the value for shareholders but also allow focused strategy for sustainable growth in its incubating businesses,” the release read.

As part of the demerger, shareholders of Adani Enterprises will receive 251 shares of Adani Wilmar for every 500 shares they own as on the record date, which is yet to be determined.

Adani Wilmar is a 50:50 joint venture between Adani group and Singapore’s Wilmar group, which sells cooking oils under the Fortune brand.