Adani Group's Q1 FY25 Results Show Robust Growth Across Emerging Sectors

The Adani Group has released its Q1 FY25 Results and Credit Compendium, showcasing strong financial performance. The group's EBITDA surged by 32.87 per cent year-on-year, reaching Rs 22,570 crore. This led to a trailing twelve-month EBITDA of Rs 79,180 crore, reflecting a 45.13 per cent increase from the previous year.

The growth is primarily driven by Adani Group's core infrastructure platform, which accounts for over 80 per cent of the portfolio EBITDA. The 'Core Infrastructure' platform comprises AEL's Infrastructure businesses, Utility (Adani Green Energy, Adani Power, Adani Energy Solutions, and Adani Total Gas) and Transport (Adani Ports & SEZ) businesses. 

The group's emerging businesses, including solar and wind manufacturing, airports, and roads, now contribute 13.3 per cent to the portfolio's EBITDA, up from 7.2 per cent a year ago. Adani Enterprises' solar module manufacturing saw sales rise by 125 per cent year-on-year, while its airport business reported a significant increase in passenger movement, routes, and consumer offerings. The transport segment also showed strong performance, with Adani Ports & SEZ achieving a 29.62 per cent EBITDA increase and securing new port concession agreements.

Additionally, the utility segment saw a 41.44 per cent EBITDA rise, driven by Adani Power's 53.6 per cent growth and Adani Green Energy's 30.3 per cent increase in operational capacity. The company also made strides in infrastructure development, with key projects such as the Khavda-Bhuj Transmission Line and the commissioning of Vizhinjam port.

Key Highlights:

• The solar manufacturing business ((India's first and largest vertically integrated solar PV manufacturer), operationalised MSPVL (Mundra Solar PV Ltd.) cell lines.
• In airports, the annual passenger movement across 7 airports crossed 90 million for the first time. During the quarter, eight new routes, six new airlines, and 13 new flights were added across all seven airports. Further, 25 new brands were added at Lucknow airport after the Terminal 3 inauguration.
• The roads business saw the highest ever 730 lane-km construction done during this quarter
• Construction work for 500 MW hydro pump storage has commenced.
• Vizhinjam port, India's first transhipment port equipped with South Asia's most advanced container-handling technology formally commissioned in July and will become operational in November. 
• The Adani Portfolio delivered 33 per cent EBITDA growth and 50 per cent earnings growth, after adjusting for prior period income and one-offs. Trailing twelve-month (TTM) EBITDA is now at Rs 79,180 crore, marking a 45 per cent increase over the corresponding TTM last year.
• Despite managing a diverse portfolio of 11 companies with 25+ businesses, the growth rate remains exceptional in comparison to 5 per cent earnings growth of Nifty 50 companies.
• With a 42 per cent growth year-on-year, the core infrastructure segment contributed 86 per cent of the group's EBITDA, ensuring long-term stability and predictability.
• Adani Portfolio's net debt to EBITDA ratio remains as low as 2.2x and its cash balance is approximately at Rs 60,000 crore.
• Despite exponential and sustained EBITDA growth, the Adani Portfolio's growth-adjusted valuation continues to remain attractive compared to the broader market index Nifty.
• On EV/EBITDA basis, the Adani Portfolio is valued at around 23x, while Nifty is at 20x, making our companies highly attractive investment propositions.

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