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Adani Enterprises reported a net loss this quarter after paying ₹2,644 crore to settle a case with US authorities.
What happened: the case pertains to US Office of Foreign Assets Control (OFAC). Since the entire payment was booked in this quarter, it pulled the company into a net loss.
Without this one-time payment, Adani would still have made a profit, although it would have been lower than last year. The company also spent much more on interest as it continued investing in airports, mining and other infrastructure projects. Higher depreciation costs also weighed on profits.
The numbers: revenue jumped 50% to ₹32,924 crore, while operating profit (EBITDA) rose 52% to a record ₹5,019 crore. Margins also improved slightly.
The biggest boost came from the copper business, where revenue surged nearly 20 times compared to last year as the company's new smelter ramped up operations. The airport business also performed well, helped by higher passenger traffic and the launch of international operations at the Navi Mumbai Airport.
Commercial mining continued to grow, while losses in that business narrowed sharply. However, the new energy business had a softer quarter, with profits declining.
Big picture: investors have been watching Adani Enterprises closely as it enters an execution-heavy phase.
Over the past year, the company has commissioned projects like the Navi Mumbai International Airport and its copper smelter, while also raising ₹15,000 crore through a QIP to fund future expansion. The focus now shifts from building these assets to generating steady cash flows and improving returns on the massive capital invested.
