Adani Enterprises sets up new subsidiary in Macau; stock jumps 4%

Shares of Adani Enterprises rallied nearly 4% in intraday trade on Tuesday after the Adani group flagship company incorporated a new step-down subsidiary. Mumbai Travel Retail Private Limited, a step-down subsidiary of Adani Enterprises, has set up a wholly owned subsidiary namely “MTRPL Macau Limited (MML)” in Macau, the company says in an exchange filing. The new entity will bid for duty-free liquor and tobacco shops at Macau International Airport.

Snapping previous session losses, Adani Enterprises shares gained as much as 3.86% to hit an intraday high of ₹2,232 on the BSE, while the market capitalisation rose to ₹2.52 lakh crore. Early today, the stock opened higher at ₹2,158 against the previous closing price of 2148.95 on the BSE.

The share price of Adani Enterprises hit its 52-week high of ₹4,189.55 on December 21, 2023, and a 52-week low of ₹1,017.10 on February 3, 2023. At the current price level, the stock trades 47% lower than its 52-week high level and has more than doubled from its 52-week low mark.

As per the exchange filing, MML has been set up with an authorised share capital of MOP $25,000 (about ₹2.5 lakh). The registration process was completed on November 20, 2023, but the company is yet to commence its business operations.

“MML is incorporated for the purpose of bidding of the tender of duty-free liquor and tobacco shops at Macau International Airport,” Adani Enterprises says in a BSE filing.

Mumbai Travel Retail Private Limited, which holds 100% share capital of MML, is required to seek necessary approval from the Reserve bank of India (RBI) after incorporation of MML.

Earlier in September this year, Ambuja Cements, the cement arm of the Adani Group, incorporated three new wholly-owned subsidiary companies to support the leasing of aircraft as well as to manufacture cement, RMX, and allied products. The names of the companies are Lotis IFSC Private Limited, Ambuja Concrete North Private Limited, and Ambuja Concrete West Private Limited. 

For the July-September quarter of FY23, Adani Enterprises reported a 50.57% year-on-year (YoY) decline in its consolidated net profit attributable to owners at ₹227.82 crore compared with ₹460.94 crore in the corresponding quarter last year.

The consolidated revenue from operations declined 41% YoY to ₹22,517.33 crore in Q2 FY24, from ₹38,175.23 crore in the same quarter last year.

The consolidated EBITDA, however, rose 39% to ₹2,979 crore from ₹2,136 crore in the same quarter last year, aided by strong incubating businesses.

The total debt of Adani Enterprises stood at ₹42,102 crore as of September 30, 2023, from ₹38,320 crore as on March 31, 2023. The gross debt includes founder's debt of ₹9,378 and net external debt of ₹32,724 crore.

Gautam Adani, Chairman of the Adani Group, says, “We are fundamentally reshaping the essence of incubation scale and velocity.”

“Adani Enterprises covers sectors that span energy, utility, transport, D2C, and primary industries. With many ventures now market-ready and thriving, our H1 FY23-24 results have been boosted by the core infra incubating businesses, thereby being a strong testament to our incubating ventures,” he adds.

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