Adani Enterprises profit surges over 50%

Adani Enterprises Limited (AEL), the flagship firm of the Adani Group, reported a 50.5% rise in consolidated net profit to ₹283 crore for the fourth quarter.

The rise in profit came on a 36% increase in revenue to ₹13,237 crore even as EBIDTA for the quarter fell 5% to ₹943 crore.

Commenting on the results, Gautam Adani, chairman, Adani Group said, “Adani Enterprises continues to focus on incubating businesses of national importance, building second generation infrastructure and utilities. A stable government emphasising on policy initiatives paves the way for growth opportunities across sectors. Our endeavour is to establish businesses of the future, creating better value for the stakeholders in long term.” For FY19, the company’s net profit fell 5% to ₹717 crore and EBITDA fell 3% to ₹2,541 crore, even as revenue increased by 12% to ₹40,379 crore.

“Shareholders’ value increased by a CAGR of 65% in last two years by demerger of renewable generation and city gas distribution businesses,” said the company in a statement.

The AEL board has recommended a dividend of ₹0.40 per equity share of face value of ₹1 each fully paid up for FY19 subject to approval by the shareholders of the company.

Reappointed to board

The board has reappointed Rajesh S. Adani as a managing director of the company for a further period of five years with effect from June 10, 2020 and Pranav V. Adani as an executive director, designated as a director of the company, for a further period of five years with effect from April, 2020.

Mr. Rajesh Adani is the brother of executive chairman Gautam Adani.

The board has also appointed Mr. Jugeshinder Singh as chief financial officer and key managerial personnel of the company with effect from Wednesday.

The company plans to raise ₹5,000 crore and will seek shareholders’ approval for an enabling resolution to raise the funds.

AEL shares fell 1.43% to ₹155.3 on the BSE in a weak Mumbai market on Wednesday.

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