Adani Enterprises (ADANIENT) Q4 04/05 earnings summary

Executive summary

• FY05 gross turnover rose 91.2% YoY to Rs. 13,515.84 crore; PBT increased to Rs. 130.62 crore, while standalone net profit fell to Rs. 108.29 crore from Rs. 124.09 crore.

• Export earnings more than doubled to Rs. 10,807.97 crore; the Ministry of Commerce recognized the business as a Five Star Export House.

Financial highlights

• Sales and operating earnings were Rs. 13,515.84 crore versus Rs. 7,069.05 crore; other income declined to Rs. 3.03 crore from Rs. 76.98 crore, mainly reflecting prior-year investment-sale gains.

• Standalone PBT was Rs. 130.62 crore versus Rs. 126.14 crore; net profit after tax was Rs. 108.29 crore versus Rs. 124.09 crore.

• Consolidated sales and operating earnings reached Rs. 15,005.34 crore versus Rs. 8,911.21 crore; consolidated PBT was Rs. 144.31 crore and net profit Rs. 121.58 crore.

• Standalone basic/diluted EPS was Rs. 4.89/Rs. 4.87; consolidated basic/diluted EPS was Rs. 5.49/Rs. 5.47, with face value adjusted from Rs. 10 to Re. 1.

• Operating cash flow was negative Rs. 224.36 crore standalone, with receivables up to Rs. 2,140.37 crore; cash and bank balances increased to Rs. 479.38 crore.

Outlook and guidance

• Management expected Indian GDP growth of ~6.0% in FY06 and saw good prospects across agro, textiles, energy, power, petroleum, precious metals and coal/coke.

• Planned priorities included expanding domestic agro trading, trading petroleum products in India, developing import-led Indian-market business and adding rock phosphate to the product range.

• Textile plans focused on international quality standards, competitive pricing, operational improvements and cost reduction amid quota-free global trade.