Adani Enterprises (ADANIENT) Q4 05/06 earnings summary

Executive summary

• FY06 standalone sales and operating earnings were Rs. 9,337.88 crore; PAT rose to Rs. 118.34 crore from Rs. 108.29 crore, supported by cost management and export realizations.

• Consolidated revenue was Rs. 12,341.48 crore and PAT Rs. 134.63 crore; strategic direction broadened beyond trading into integrated energy, agro, metals and real estate activities.

Financial highlights

• Standalone sales and operating earnings were Rs. 9,337.88 crore versus Rs. 13,515.84 crore in FY05; reported PBT was Rs. 156.45 crore versus Rs. 130.62 crore.

• Adjusted for the excess provision write-back, pre-tax profit was Rs. 142.04 crore, up 10%; PAT of Rs. 118.34 crore grew 10% YoY, per management.

• Consolidated revenue was Rs. 12,341.48 crore versus Rs. 15,005.34 crore; PBT was Rs. 173.65 crore versus Rs. 144.31 crore and PAT Rs. 134.63 crore versus Rs. 121.58 crore.

• Standalone gross profit before depreciation, interest and tax rose to Rs. 271.82 crore from Rs. 184.88 crore; finance charges increased to Rs. 126.57 crore from Rs. 52.15 crore.

Outlook and guidance

• Management anticipated strong growth in coming years, citing multi-business growth drivers and competitive trading capabilities; the outlook remained subject to economic and regulatory changes.

• Planned expansion included coal mining, power generation, agro storage and distribution, and real estate through domestic and overseas subsidiaries.

• Agro plans included more domestic trading and imports; energy plans included dedicated iron-ore mining arrangements and new bunkering barges and facilities at Mundra.

• Fertilizer plans called for regular sulphur imports through Haldia and Vizag and additions to the product portfolio; a similar specialized jewellery unit was planned for NOIDA after the Surat SEZ unit.