Adani Enterprises (ADANIENT) Q4 01/02 earnings summary

Executive summary

• FY02 performance weakened amid domestic and global recession: standalone sales and other income fell 7.84% YoY to ₹2,825.55 crore; profit after tax declined to ₹65.67 crore from ₹118.30 crore.

• Strategy shifted toward fewer business groups and higher-return activities; marine products were being phased out, while agro, energy, textiles, precious goods and strategic investments remained focus areas.

• Edible-oil activity was increasingly concentrated in Adani Wilmar Ltd.; excluding the prior-year ₹390 crore turnover from that business, management reported moderate turnover growth in FY02.

Financial highlights

• Standalone sales and operating earnings were ₹2,812.44 crore versus ₹3,013.99 crore; other income was ₹13.11 crore versus ₹51.80 crore.

• Standalone gross profit before depreciation, interest and tax was ₹109.64 crore versus ₹151.60 crore; PBT was ₹65.97 crore versus ₹119.97 crore.

• Standalone PAT was ₹65.67 crore versus ₹118.30 crore; consolidated revenue was ₹377,049.40 lacs and consolidated PAT ₹8,399.56 lacs.

• Standalone operating cash flow was negative ₹14,602.00 lacs, reflecting working-capital movements; year-end cash and bank balances were ₹12,079.81 lacs.

Outlook and guidance

• FY03 coal orders were expected to reach about 18 lakh tonnes from State Electricity Boards, fertilizer producers and cement plants, following FY02 sales of 15 lakh tonnes.

• Agro sales of wheat, rice, soyabean meal, castor oil, sugar and pulses were expected to grow; rice exports had been added to the trading portfolio.

• Petroleum-products trading was expected to expand in India, with port infrastructure positioned to support higher naphtha volumes; fertilizer volumes were expected to rise with economic recovery.

• Container-terminal operations at Mundra were scheduled to begin in phases from October 2002; project cost was appraised at ₹297 crore.