Shares of Adani Enterprises Ltd were trading in the green during the early trading hours on 2 May but fell sharp by 1% after the company announced its quarterly earnings for January-March. 

The fourth quarter of FY24 saw a 38% year-over-year decline in net profit to Rs 451 crore, mostly due to an unexpected charge and rising operating and material costs. The Adani Group’s flagship company revealed that its revenue from operations in the fiscal fourth quarter increased by about 1% YoY to Rs 29,180 crore.

The board of directors of the company have also declared a dividend of Rs 1.3 per share for the fiscal year 2023–2024. 

The operating costs of Adani Enterprises, which increased by 31% year over year to Rs 9,324 crore, appear to have taken the biggest toll on the company’s Q4 results. During the quarter, the cost of materials utilised more than doubled from Rs 1,324 crore to Rs 2,824 crore, year over year.

The figures showed that the company’s overall expenses for the quarter increased by 2% year over year to Rs 28,309 crore, eating up more of the gains in total income.

Moreover, the company operating the airports also suffered a significant loss of Rs. 627 crores as a result of the Mumbai International Airport Ltd.’s annual fees for the months of March through September 2022. 

The company’s road infrastructure segment pre-tax earnings dropped by 84%, whereas its commercial mining division recorded a pre-tax loss of Rs 201, as opposed to a profit of Rs 231 crore the year prior.

The mining and infrastructure divisions underperformed compared to the company’s core coal trading business, which generated an almost double-digit profit before taxes of Rs 1,571 crore.

For the Mumbai airport and the company’s solar panel business, Adani Enterprises is reportedly in talks to raise up to $1 billion from investors in the US and Europe, according to a recent Mint news piece. The airport operator plans to increase the airport’s size and handle three times as many passengers, according to the article that quoted unidentified sources.

During the next ten years, the Adani Group plans to invest up to $100 billion in the transition to green energy in order to attain net zero emissions for its ports, power, and cement businesses by 2050. The company plans to use more green hydrogen in its endeavours to reduce carbon emissions from operations.

At 3:30 pm, the shares of Adani Enterprises closed 0.84% lower at Rs 3,029 on NSE.