Adani Enterprises okays food FMCG biz demerger; Q1 net up 116% on infra push

Adani Enterprises’ board has approved the demerger of its food FMCG business to Adani Wilmar (AWL), along with its strategic investment in Adani Commodities LLP. The company also announced its quarterly earnings for Apr-Jun, with net profit more than doubling compared to the previous year.

“The food FMCG business has become self-sustained, performing well and poised for further growth under AWL,” Adani Enterprises said in a statement.

A market leader in edible oil segment, Adani Wilmar offers an extensive array of edible oil products, including soyabean oil, palm oil, sunflower oil, rice bran oil, mustard oil, groundnut oil, cottonseed oil, blended oil, vanaspati and specialty fats. Shareholders of Adani Enterprises will get 251 shares of Adani Wilmar for every 500 that they hold in the company. “For AEL, this arrangement will not only unlock the value for sharehol ders but also allow focused strategy for sustainable growth in its incubating businesses,” it said.

PROFIT DOUBLES

For the June quarter, the company more than doubled its profit back ed by strong operational performance from its core infrastructure businesses, including airports, roads and solar and wind turbine manufacturing.

The consolidated net profit of the Adani group’s flagship company rose 116% on year to ₹1,458 crore. Total income for the quarter rose 13% on year to ₹26,067 crore, while operating profit surged by 48% to ₹4,300 crore.

The incubator houses the group’s green hydrogen ecosystem, airport management, data center, roads and primary industries like copper and petrochemicals.

ANIL Ecosystem–which comprises of solar and wind turbine manufacturing saw its total income jump by 1.4 times, while operating profit surged by 3.6 times to ₹1,642 crore. The company’s sales of s
olar modules jumped 125% on year, while operating margins improved due to lower costs.
In its airport operations, the company added 8 routes and 6 airlines , while in its roads business, the company has crossed the 80% completion mark in three of its 10 under-construction projects.