Adani Enterprises profit leaps and what it means for the stock

5paisa Research Team

Last Updated: 11th December 2022 - 02:35 am

On Thursday, the 04th of August, Adani Enterprises posted 73% higher net profits on a consolidated basis at Rs469 crore. For the quarter ended June 2022, Adani Enterprises net profits were sharply higher compared to Rs271 crore in Q1FY22 quarter. For the June 2022 quarter, the total revenues of Adani Enterprises stood at a robust Rs40,844 crore, up 224.7% on yoy basis. Adani Enterprises is the holding company for its strategic businesses and also the incubating centre for incubating start-ups that are part of the Adani ecosystem.

In the words of the chairman of the group, over the years Adani Enterprises had proved itself as one of the most successful multi-industry incubators. Many of the high growth businesses like airports, toll-ways, green energy and data centres are all incubated and nurtured by Adani Enterprises or by one of its subsidiaries. Today the business mix of Adani Enterprises straddles businesses like data centres, airport ecosystems, road and water infrastructure, defence, digital technology and aerospace.

Adani Enterprises is unique in a number of ways. It is a traditional infrastructure company but as the DNA of a start-up. It is the first case in India where the holding company cum incubation centre of a group takes such broad ranging responsibility for the outcome of the actions. In pure PE metrics, the story may appear skewed. However, one were to look at the hidden value created in this franchise and also the positive value surprises coming from its incubation business, which has the capacity to scale up rapidly in term of profits.

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