Adani Enterprises (ADANIENT) Q4 02/03 earnings summary

Executive summary

• FY03 total income reached Rs. 2,872.50 crore; gross profit before depreciation, interest and tax rose to Rs. 130.91 crore and net profit to Rs. 88.34 crore. Planned disinvestment contributed Rs. 59.68 crore of other income.

• Trading across agro, energy, textiles and precious goods was paired with venture development; Coal, Wheat and selected petroleum products were standout performers.

• Consolidated FY03 net profit was Rs. 11,020.06 lacs and EPS was Rs. 48.56, versus Rs. 8,399.56 lacs and Rs. 34.36 in FY02.

Financial highlights

• Standalone sales and operating earnings were Rs. 2,811.89 crore versus Rs. 2,816.42 crore; other income increased to Rs. 60.61 crore from Rs. 9.13 crore.

• Standalone PBT was Rs. 90.92 crore versus Rs. 65.97 crore; PAT was Rs. 88.34 crore versus Rs. 65.67 crore.

• Standalone basic and diluted EPS rose to Rs. 39.42 from Rs. 28.13; consolidated EPS rose to Rs. 48.56 from Rs. 34.36.

• Consolidated sales and operating earnings were Rs. 450,355.82 lacs versus Rs. 376,136.16 lacs; consolidated PAT was Rs. 11,020.06 lacs versus Rs. 8,399.56 lacs.

• Cash from standalone operations was Rs. 6,020.92 lacs versus Rs. 14,574.93 lacs; year-end cash and bank balances were Rs. 10,447.69 lacs.

Outlook and guidance

• Plans included expanded sugar exports, growth in wheat, rice, soyabean meal, castor oil and pulses, and increased petroleum product trading, with Naphtha targeted for volume growth.

• Diamond trading was expected to increase in volume, with cut-and-polished exports planned for China, Taiwan, Dubai and Europe; management anticipated reasonable volumes and good margins.

• Coal strategy emphasized asset-based trading, long-term sourcing and Mundra logistics; a three-year purchase-supply contract with Shanxi Coal was signed.

• Textile plans targeted value-added products and exploration of jute and garments ahead of the 2005 quota-free regime.