Adani Group’s Profit Drops 11% In March Quarter; Here’s What Analysts Say On Adani Stocks

by | May 3, 2024 | Business

The latest financial results for the Adani Group have revealed a decline in performance, with the combined net profit of its listed companies dropping by 11% year-on-year in the March quarter of the financial year 2023-24 (Q4FY24). While the group reported a consolidated net profit of Rs 8,055 crore in Q4, compared to Rs 9,093 crore in the same quarter last year, certain key subsidiaries such as Adani Enterprises, Adani Green Energy, Adani Power, and Adani Energy Solutions experienced a downturn, impacting the overall figures.

Adani Enterprises, the flagship company, saw a significant decline of 38% in its net profit to Rs 450.58 crore, attributed in part to an expense related to the Mumbai International Airport. Similarly, Adani Green Energy, Adani Power, and Adani Energy Solutions witnessed declines of 70%, 48%, and 7% respectively in their consolidated net profits.

However, amidst these declines, other companies within the Adani Group posted positive growth in their net profit figures. Cement giants ACC and Ambuja Cements reported substantial rises of 301% and 64% respectively in their net profits for Q4FY24.

Analysts have offered insights into the performance of these companies and their outlook for the future. Axis Securities is bullish on ACC, citing positive industry dynamics driven by infrastructure development and government initiatives. Similarly, Antique Stock Broking maintains a positive outlook on Ambuja Cements, anticipating improved cost efficiencies and volume growth.

Adani Ports and Special Economic Zone (APSEZ) stood out with a notable 76% increase in its consolidated net profit, drawing praise from brokerage firm Motilal Oswal Financial Services. They project significant growth in cargo volumes for APSEZ over the coming years, driven by operational enhancements and logistics business expansions.

Furthermore, Adani Total Gas and Adani Wilmar recorded impressive rises of 72% and 67% respectively in their consolidated net profits for the quarter.

Despite the mixed performance across its subsidiaries, the Adani Group continues to be closely watched by investors and analysts. While certain entities face challenges, others demonstrate resilience and growth potential, reflecting the diverse portfolio and strategic positioning of the conglomerate in various sectors.

Investors are advised to exercise caution and consult with financial experts before making any investment decisions, as market conditions and individual company performances may vary.

Follow YOUxTalks on Instagram: https://www.instagram.com/youxtalks/

You May Also Like