How is the financial performance of the Adani Group companies in the last five years

There is a lot of buzz around the Adani group recently. It started when last year Adani group acquired cement manufacturing companies ACC and Ambuja cement and became India’s second-largest cement manufacturer. The group also ventured into the media and entertainment sector with the acquisition of media company NDTV. Apart from these new businesses, Adani group is a major player in Infra, mining, power, transmission, and FMCG sector. Gautam Adani, the chairman of the Adani group was named the world’s second richest person according to the Bloomberg billionaire index. However, the fortunes of the Adani group stocks have taken a U-turn. Since short seller, Hindenburg’s report comes in the public domain. All Adani stocks have fallen drastically since Jan 24. Let’s have look at Adani group’s financial performance over the last few years. The data is sourced from the corporate database Ace Equity and is on consolidated basis annualised data.

Gross Revenue of Adani group: Five years back in FY 17 the seven Adani group companies named Adani Enterprises, Adani Green Energy, Adani Ports and Special Economic Zone, Adani Power, Adani Total Gas, Adani Transmission, and Adani Wilmar have gross revenue of Rs 96,217.27 crore. With a growth of 94 per cent in five years the group revenue now is Rs 1.87 lakh crore. If we also include recently acquired listed companies ACC, Ambuja, and Ndtv, the top line comes at Rs 2.39 lakh crore.

Group Profitability: In FY 2021 Adani group has profit after taxes (PAT) of Rs. 9,660 crore which has now grown to Rs 18,813 crore in FY 22 including the profits of the recent acquisitions. The acquisition of ACC and Ambuja has boosted the profitability by Rs. 5,542 crore. While the operating profit for the group stands at Rs 51,625 crore in FY22. However five years before the Adani group posted net loss of Rs 770 crore in FY 17 mainly due to Rs 6,174 crore one-time loss in Adani power that year.

Total Debt on Adani group: Total debt on the Adani group amounts to Rs 2.25 lakh crore in FY 22 has increased 39 per cent in a year from Rs 1.62 lakh crore in FY 21. However recently acquired companies ACC, Ambuja cement and NDTV have negligible debt on their books. The Adani group has always relied heavily on debt funding for unlocking the growth. Five years ago Adani group has total debt of Rs 1.12 lakh crore in FY 17.

Total Assets: In FY 2017 Total assets of Adani Group were Rs 2.35 lakh crore. Group assets from there have grown 102 per cent in five years to Rs 4.76 lakh crore in FY 22. Total Assets in FY 22 include the Assets of Ambuja cements Rs 45,204 crore, ACC Rs 21,039 crore, and Rs 478 crore assets of NDTV. Here we can see Adani group has more than double the size of assets than its debt. ACC and Ambuja cement acquisition was really helpful for the group as these companies are almost debt free and hence do not increase the debt burden on the group while help increasing the group asset bank by Rs 66,243 crore.

Latest quarterly performance: In Q2 FY23 Adani group posted Rs 82,267 crore in revenue, Rs 11,568 crore in operating profit, Rs 3,786 crore in interest payments for debt, and Rs 3,550 Net profit for three months period from July to September 2022.