Adani Enterprises (ADANIENT) Q4 03/04 earnings summary

Executive summary

• FY2003-04 standalone sales and other income rose 149% YoY to Rs. 7,155.33 crore; PAT increased 40% to Rs. 124.09 crore, with broader trading activity adding substantially to turnover.

• Consolidated sales and operating earnings reached Rs. 8,920.51 crore and consolidated PAT was Rs. 140.06 crore; power, iron ore and diamond trading expanded the commodity portfolio.

Financial highlights

• Standalone sales and operating earnings were Rs. 7,078.35 crore vs Rs. 2,811.90 crore; other income was Rs. 76.98 crore vs Rs. 60.37 crore.

• Standalone PBT was Rs. 126.14 crore vs Rs. 90.92 crore; PAT was Rs. 124.09 crore vs Rs. 88.34 crore.

• Gross profit before depreciation, interest and tax rose to Rs. 172.25 crore from Rs. 130.92 crore; planned disinvestment generated Rs. 76.98 crore of other income.

• Consolidated sales and operating earnings were Rs. 8,920.51 crore vs Rs. 4,503.56 crore; consolidated PAT was Rs. 140.06 crore vs Rs. 110.20 crore.

Outlook and guidance

• Power trading target: approximately 1,000 million units in FY2004-05, following 102 million units traded from Dec 2003 to Mar 2004, with turnover of about Rs. 22 crore.

• Export growth, agro commodities and petroleum products were identified as growth priorities; management also planned to build textile margins through cost reduction and operational improvements.

• Management expected power trading to benefit from supply-demand imbalances, while noting that broader market development depends on electricity-sector reforms and transmission capacity.