Adani group posts EBITDA growth of 42% in 1Q

Adani Group delivered EBITDA growth of 42 per cent YoY to INR235,320m (US$2852m) in 1QFY24 with businesses across segments ranging from airports and sea ports registered good growth, the company said. Airports, green hydrogen and other businesses under the flagship incubator saw their profits almost double YoY. With EBITDA of INR17,180m, these businesses contributed seven per cent to the portfolio EBITDA.

The core infrastructure and utility platform, which generates stable and assured cash flows, accounted for 86 per cent of the total portfolio EBITDA and stood at INR20,2330m. “This gives a high level of stability and multi-decadal earnings predictability and visibility. The robust profits have resulted in the portfolio gaining a very strong liquidity position,” it said. Adani group’s cash balance at the end of June 2023 was INR421,150m, up 4.2 per cent from a quarter ago.

“The robust portfolio performance was primarily driven by the renewable power business under Adani Green, infrastructure businesses under Adani Enterprises, and cement businesses under Adani Cement,” the company said. Adani Green reported EBITDA of INR22,000m, up 67 per cent YoY on the back of an increase in operational capacity by 43 per cent to 8316 MW. The cement business showed a strong operating performance because of cost optimisation and improving synergies. EBITDA per tonne increased to INR1253 from INR888 in June 2022 quarter and INR1079 in March 2023 quarter which led to EBITDA growth of the cement business by 54 per cent YoY to INR19350m

Adani Cement Business (Ambuja / ACC) posted a sales volume increase of nine per cent QoQ to 15.4Mt. It said EBITDA per tonne improved 16 per cent QoQ to INR1253 led by business excellence in operations, cost efficiencies and synergies.