Adani Enterprises Q3 profit slumps 88%. Here's why

Adani Enterprises ' stock declined 3 per cent on BSE to close at Rs 2,253 on January 30, 2025, after the company's Q3 FY25 profit after tax slumped 88 per cent from a year ago to Rs 232 crore, while revenue fell 9 per cent from a year ago to Rs 22,848 crore.

What dragged Adani Enterprises?

• Lower coal trading revenue: The company's revenue from Integrated Resources Management (IRM) business, which handles supply of critical minerals, particularly coal, dropped 44 per cent YoY. This decline directly weighed on overall revenue.
  
• Finance costs: Interest costs ballooned 2.5 times to Rs 2,141 crore from a year ago.
  
• Margin pressure: Gross margins contracted from 51 per cent to 47 per cent, though the impact was partially cushioned by a fall in other expenses.
  
• Currency impact: The sharp depreciation of the currency, primarily the Australian dollar, resulted in a forex loss of Rs 296 crore against a gain of Rs 101 crore last year.

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