Adani Enterprises Ltd, a prominent Indian multinational conglomerate, has witnessed significant growth over the past five years.
The company’s financial performance has been impressive, reflecting its expanding business operations and increasing profitability.
For investors who had invested ₹10,000 in Adani Enterprises Ltd shares five years ago, the returns would be substantial.
This article will analyze the financials of Adani Enterprises Ltd to understand the growth and returns on investment.
Financial Performance
The financial performance of Adani Enterprises Ltd can be gauged from its income statement and balance sheet.
The income statement provides insights into the company’s revenue, expenses, and profitability, while the balance sheet offers a snapshot of its assets, liabilities, and equity.
Income Statement
The income statement for Adani Enterprises Ltd over the past five years is presented below:
| Year | Sales | Other Income | Total Income | Total Expenditure | EBIT | Interest | Tax | Net Profit |
|---|---|---|---|---|---|---|---|---|
| 2020 | ₹39,537 | ₹1,012 | ₹40,290 | ₹41,391 | ₹2,594 | ₹1,572 | ₹324 | ₹798 |
| 2021 | ₹43,402 | ₹1,119 | ₹44,086 | ₹41,391 | ₹2,694 | ₹1,572 | ₹339 | ₹746 |
| 2022 | ₹69,420 | ₹1,196 | ₹70,432 | ₹66,954 | ₹3,478 | ₹2,525 | ₹476 | ₹2,020 |
| 2023 | ₹96,420 | ₹1,860 | ₹98,281 | ₹88,801 | ₹9,480 | ₹4,554 | ₹1,031 | ₹3,294 |
| 2024 | ₹136,977 | ₹1,760 | ₹138,175 | ₹130,955 | ₹7,221 | ₹3,969 | ₹1,046 | ₹2,220 |
The income statement indicates a steady increase in sales and other income over the years. Total income has also risen significantly, with a compound annual growth rate (CAGR) of approximately 24.5%.
Total expenditure has increased at a slower rate, resulting in higher profitability. The company’s net profit has grown from ₹798 in 2020 to ₹2,220 in 2024, a significant increase of over 178%.
Balance Sheet
The balance sheet for Adani Enterprises Ltd over the past five years is presented below:
| Year | Share Capital | Reserves & Surplus | Current Liabilities | Other Liabilities | Total Liabilities | Fixed Assets | Current Assets | Other Assets | Total Assets |
|---|---|---|---|---|---|---|---|---|---|
| 2020 | ₹109 | ₹16,836 | ₹23,288 | ₹6,662 | ₹46,898 | ₹17,684 | ₹24,182 | ₹5,031 | ₹46,898 |
| 2021 | ₹109 | ₹17,048 | ₹21,483 | ₹13,001 | ₹51,642 | ₹19,511 | ₹19,963 | ₹12,168 | ₹51,642 |
| 2022 | ₹109 | ₹21,506 | ₹43,849 | ₹36,293 | ₹101,760 | ₹53,366 | ₹30,945 | ₹17,448 | ₹101,760 |
| 2023 | ₹109 | ₹31,759 | ₹44,803 | ₹64,810 | ₹141,487 | ₹80,019 | ₹37,121 | ₹24,346 | ₹141,487 |
| 2024 | ₹114 | ₹38,962 | ₹44,651 | ₹77,004 | ₹160,731 | ₹100,117 | ₹36,860 | ₹23,753 | ₹160,731 |
The balance sheet indicates a steady increase in the company’s assets and reserves over the years.
Share capital has remained relatively constant, while reserves and surplus have increased significantly.
Current liabilities have increased, but other liabilities have decreased. The company’s total liabilities have increased, but fixed assets and current assets have also risen.
The total assets have grown from ₹46,898 in 2020 to ₹160,731 in 2024, a significant increase of over 244%.
Returns on Investment
If you had invested ₹10,000 in Adani Enterprises Ltd shares five years ago, the returns would be substantial. The company’s share price has risen from ₹151.35 on July 6, 2019, to ₹3416.40 on May 31, 2024. This represents a growth of over 2173% in just five years.
To calculate the returns, we can use the following formula:
Returns = (Current Value – Initial Value) / Initial Value
Returns = (₹3416.40 – ₹151.35) / ₹151.35
Returns = ₹3265.05 / ₹151.35
Returns = 215.5%
This means that if you had invested ₹10,000 in Adani Enterprises Ltd shares five years ago, your investment would be worth approximately ₹215,500 today.
Conclusion
Adani Enterprises Ltd has demonstrated significant growth over the past five years, with impressive financial performance and returns on investment.
The company’s income statement and balance sheet indicate a steady increase in revenue, profitability, and assets.
If you had invested ₹10,000 in Adani Enterprises Ltd shares five years ago, your investment would have grown by over 2155%, making it a highly profitable investment.