Adani Enterprises Q1 net profit dips 29%

The Adani Group's flagship firm,which has diversified interests ranging from ports to logistics,had consolidated net profit of Rs 569.81 crore in the year-ago period.

Written by Agencies | Mumbai | Published:August 9, 2012 8:45 pm

Adani Enterprises Ltd today reported a 29.29 per cent decline in consolidated net profit for the first quarter ended June 30 at Rs 402.88 crore mainly due to non-availability of domestic coal,high prices of imported coal and limited availability of transmission lines.

The Adani Group’s flagship firm,which has diversified interests ranging from ports to logistics,had consolidated net profit of Rs 569.81 crore in the year-ago period.

“The quarterly performance is adversely affected by power sectoral issues which are beyond our control such as shortfall against linkage of domestic coal,high prices of imported coal and limited availability of transmission line,”

Adani Group Chairman Gautam Adani said in a statement here.

Total revenues,however,grew 15 per cent at Rs 11,035.6 crore as against Rs 9,596.22 crore in the first quarter of the previous fiscal. “Adani Enterprises,however,continues to reap benefits of synergy and integration of its core businesses in resources,logistics and energy,” he said.

During the quarter,cargo handling grew 9 per cent in Adani Ports,while there was de-growth of 6 per cent in all other major ports put together. The company increased its market share in cargo handling by 1 per cent to over 11 per cent during the period,the release said.

“Even on the container side,the company outperformed other container ports by registering a 25 per cent growth compared to no growth at other container terminals. Adani Ports’ market share in containers has risen to 18 per cent,up by 3 per cent,” the release said.

“We have achieved the highest volume in all our businesses and continue to be market leaders in our coal trading,power generation and port business. We expect the overall performance from our businesses to improve substantially as the recent investments in power,port and mining start generating returns,” Adani Enterprises Executive Director Devang Desai said.

On it Australian mining venture business,the release said the company has submitted the draft EIS (environmental impact study) to Coordinator General of that country for Carmichael mine and rail projects.

The Gujarat-based Adani Group has coal mines in Australia’s Queensland province and a port at Abbot,which it had bought two years ago for nearly USD 2 billion. The company is also involved in a rail project in Australia.

“The environment and other permissions are as per the schedule and are expected by the last quarter of this financial year.

“We are expecting the financial closure during this year and will then start construction of mine,rail and port capacities,” it said.

On power front,the company said it sold 4.5 billion units during the first quater as against 2.9 billion units in the same period a year ago.

“Our power generation capacity is expected to increase from 4,660 MW in 2012 to 10,000 MW by the end of 2013,” it said.

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