Adani Portfolio shows a record-breaking growth of 47 percent for first half of 2023


Bihar Chief Minister Nitish Kumar felicitates Director Adani Group Pranav Adani during the Bihar Business Summit 2023 in Patna on Thursday (ANI)

Adani Group pledges to increase ten-fold the conglomerate’s investment in Bihar, besides foraying into new sectors in which they did not have a footprint in the state

Our Bureau

In a massive positive sign, Adani Portfolio unveiled its financial performance for the first half of the fiscal year 202, reporting a record-breaking 47 per cent year-on-year (YoY) growth in EBITDA, reaching RS 43,688 crore (USD 5.3 billion). According to a press release by Adani, this achievement marks the highest-ever half-year growth for the diversified business conglomerate, emphasizing the resilience and robustness of its integrated business portfolio.

The first half of FY23 witnessed substantial EBITDA growth, exceeding the full-year EBITDA of FY22. The trailing twelve-month EBITDA reached approximately three times the FY19 EBITDA. Core infrastructure businesses, contributing 86 per cent of the total EBITDA, exhibited an impressive 52 per cent YoY growth, amounting to RS 37,379 crore (USD 4.5 billion).

These core businesses include utility (Adani Green Energy, Adani Energy Solutions, Adani Power, and Adani Total Gas), transport (Adani Ports and SEZ), and other incubating infrastructure ventures under Adani Enterprises (green hydrogen integrated manufacturing, airports, and roads).

Incubating assets, including Airports, Green Hydrogen, and others, contributed around 8 per cent to the portfolio EBITDA. Notably, the low-cost green hydrogen integrated manufacturing reported a remarkable 212 per cent YoY revenue growth and a 10x increase in EBITDA.

The airports business under Adani Enterprises experienced a 29 per cent YoY growth in passenger traffic during the first half, resulting in a 42 per cent revenue growth. The cement business (Ambuja and ACC) showcased impressive performance with H1 FY24 EBITDA more than doubling YoY despite single-digit volume growth, reflecting cost and operational synergy benefits.

Adani Green Energy reported a significant milestone with a 76 per cent YoY EBITDA growth, reaching RS 8,325 crore (USD 1 billion) on a trailing twelve-month basis. Adani Ports and SEZ achieved a noteworthy milestone as domestic cargo volumes surpassed the 200 MMT mark within a six-month period, leading to over 2x growth compared to the overall cargo volume growth in India.

Jugeshinder (Robbie) Singh, Group CFO, expressed satisfaction with the incubation’s success and the diverse contributions from various sectors within the portfolio. He emphasized the portfolio’s consistent growth even in the face of macroeconomic challenges.

Singh said, “The incubation continues to be a success story with Airports, Green Hydrogen and other incubating assets emerging strongly and now contributing nearly 8 per cent of the portfolio EBITDA. The Portfolio has withstood the test of time and has a track record of tremendous growth in spite of macroeconomic and other challenges.”

According to a press release by Adani, the financial achievements and strategic initiatives underscore Adani Portfolio’s commitment to fortifying India’s infrastructure development.

In another important development, the Adani Group on Thursday pledged to increase ten-fold the conglomerate’s investment in Bihar, besides foraying into new sectors in which they did not have a footprint in the eastern state. Addressing Bihar Business Connect 2023, Pranav Adani, Managing Director (Agro, Oil and Gas) of Adani Enterprises, said the group intends to raise its investment in the state to Rs 8,700 crore from the current Rs 850 crore.

“We will invest in three additional areas and generate 10,000 direct and indirect employment opportunities,” Pranav Adani said on the occasion.

The Adani Group aims to raise its godown storage capacity from 1 lakh square feet to 65 lakh square feet, with an investment of Rs 1,200 crore. “Two large-size godowns will come up in the state, one of which will be set up in the capital city Patna,” the official said.

Further in his address, Pranav Adani said the group wants to expand its city gas network in Gaya and Nalanda with an estimated investment of Rs 200 crore. Adani Wilmar, the conglomerate FMCG company, will make its mark in the eastern state. “Initially, we will start with wheat processing unit, a solvent extractor unit, and a co-generation power unit,” he said.

During the event, the Adani Group representative also announced it will invest Rs 2,500 crore for cement manufacturing plants in Warisaliganj and Mahabal. The third area in which the conglomerate wishes to enter is smart meter manufacturing. “Now Bihar is shifting towards smart meters. We will install more than 28 lakh smart meters across Siwan, Saran, Gopalganj, Vaishali, and Samastipur to bring in automation in the power sector,” he said. The investments in smart meter manufacturing would be about Rs 3,100 crore.

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