ADANI ENTERPRISES 2023-24 Annual Report Analysis

Fri, 31 May

ADANI ENTERPRISES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ADANI ENTERPRISES Income Statement Analysis

• Operating income during the year fell 24.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY24 as against 6.6% in FY23.
• Depreciation charges increased by 24.9% and finance costs increased by 14.8% YoY, respectively.
• Other income grew by 55.7% YoY.
• Net profit for the year grew by 49.7% YoY.
• Net profit margins during the year grew from 1.7% in FY23 to 3.4% in FY24.

ADANI ENTERPRISES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,275,395	964,210	-24.4%
Other income	Rs m	11,946	18,605	55.7%
Total Revenues	Rs m	1,287,341	982,815	-23.7%
Gross profit	Rs m	84,484	106,612	26.2%
Depreciation	Rs m	24,361	30,422	24.9%
Interest	Rs m	39,689	45,547	14.8%
Profit before tax	Rs m	32,379	49,249	52.1%
Tax	Rs m	10,379	16,315	57.2%
Profit after tax	Rs m	22,000	32,934	49.7%
Gross profit margin	%	6.6	11.1
Effective tax rate	%	32.1	33.1
Net profit margin	%	1.7	3.4

Don't Miss: Key Information for Long-term Investors

ADANI ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 441 billion as compared to Rs 448 billion in FY23, thereby witnessing an decrease of -1.7%.
• Long-term debt stood at Rs 463 billion as compared to Rs 326 billion during FY23, a growth of 42.2%.
• Current assets fell 1% and stood at Rs 365 billion, while fixed assets rose 19% and stood at Rs 1,237 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,606 billion as against Rs 1,413 billion during FY23, thereby witnessing a growth of 14%.

ADANI ENTERPRISES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	330,510	364,521	10.3
Current Liabilities	Rs m	448,031	440,581	-1.7
Long-term Debt	Rs m	325,900	463,422	42.2
Total Liabilities	Rs m	1,412,785	1,605,862	13.7
Current assets	Rs m	370,217	365,262	-1.3
Fixed Assets	Rs m	1,041,568	1,237,262	18.8
Total Assets	Rs m	1,412,785	1,605,862	13.7

ADANI ENTERPRISES Cash Flow Statement Analysis

• ADANI ENTERPRISES's cash flow from operating activities (CFO) during FY24 stood at Rs 103 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -191 billion, an improvement of 13.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 89 billion, an improvement of 841% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 billion from the Rs 10 billion net cash flows seen during FY23.

ADANI ENTERPRISES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	176,265	103,122	-41.5%
Cash Flow from Investing Activities	Rs m	-168,601	-190,822	-
Cash Flow from Financing Activities	Rs m	-11,975	88,787	-
Net Cash Flow	Rs m	9,701	4,242	-56.3%

Current Valuations for ADANI ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.9, an improvement from the EPS of Rs 19.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,276.1, stands at 113.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 45.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	1,118.8	845.8
TTM Earnings per share	Rs	19.3	28.9
Diluted earnings per share	Rs	19.3	28.9
Price to Cash Flow	x	43.0	45.2
TTM P/E ratio	x	89.8	113.4
Price / Book Value ratio	x	9.0	7.9
Market Cap	Rs m	2,967,793	2,862,115
Dividends per share (Unadj.)	Rs	1.2	1.3

Ratio Analysis for ADANI ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY24, from 0.8x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 2.1x during FY24, from 1.8x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 9.0% during FY24, from 6.7% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 11.4% during FY24, from 11.0% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 4.9% during FY24, from 4.4% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.8	0.8
Debtors’ Days	Days	4	4
Interest coverage	x	1.8	2.1
Debt to equity ratio	x	1.0	1.3
Return on assets	%	4.4	4.9
Return on equity	%	6.7	9.0
Return on capital employed	%	11.0	11.4

To see how ADANI ENTERPRISES has performed over the last 5 years, please visit here.

ADANI ENTERPRISES Share Price Performance

Over the last one year, ADANI ENTERPRISES share price has moved up from Rs 2,494.3 to Rs 3,276.1, registering a gain of Rs 781.9 or around 31.3%.

Overall, the S&P BSE SENSEX is up 18.4% over the year.

(To know more, check out historical annual results for ADANI ENTERPRISES and quarterly results for ADANI ENTERPRISES)