Adani Enterprises (ADANIENT) Q4 99/00 earnings summary

Executive summary

• FY00 delivered record gross profit before depreciation, interest and tax of Rs. 136.98 crore and PAT of Rs. 110.98 crore, supported by higher trading income and disciplined global trading operations.

• Strategy broadened beyond trading through Mundra Port operations and the Adani Wilmar edible-oil refinery project; growth plans centered on new markets and additional traded commodities.

Financial highlights

• Sales and other income rose to Rs. 2,853.11 crore from Rs. 2,188.70 crore; operating earnings were Rs. 2,814.30 crore and other income Rs. 38.81 crore.

• PBT was Rs. 111.00 crore vs. Rs. 65.71 crore; PAT was Rs. 110.98 crore vs. Rs. 65.69 crore, with wealth-tax provision of Rs. 0.02 crore.

• Gross profit before depreciation, interest and tax reached Rs. 136.98 crore vs. Rs. 96.46 crore; interest expense fell to Rs. 23.95 crore from Rs. 28.76 crore.

• Equity dividends: 25% interim and 5% recommended final, proportionate to bonus shares; 13.5% preference-share interim dividends totaled Rs. 5.14 crore, with Rs. 0.13 crore final recommended.

Outlook and guidance

• Growth priorities were to exceed historical growth by pursuing greater market share, entering new markets and expanding the commodity basket; no numerical FY01 guidance was stated.

• Adani Wilmar’s Mundra refinery, with 600 TPD refined-oil and 100 TPD vanaspati capacity, was expected to start operations in Q3 2000.

• Mundra Port planned container and dry-bulk terminals; construction of its 54 km rail link was progressing satisfactorily.