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Adani Enterprises Q3 net up 2.17% at Rs 416.11 cr

The flagship company of the Adani group had reported a net profit of Rs 407.28 crore during the same quarter of the previous fiscal.

New Delhi: Hit by over 50 percent increase in finance costs and shrinking margins, Adani Enterprises Friday reported a marginal growth of 2.17 percent in consolidated net profit at Rs 416.11 crore during the third quarter ended December 31, 2012.

The flagship company of the Adani group had reported a net profit of Rs 407.28 crore during the same quarter of the previous fiscal.

Net sales of the company were up 51 percent to Rs 13,610.29 crore during the quarter vis-a-vis Rs 9,014.73 crore of the October-December period of FY'12, it said in a filing to the BSE.

However, company's total expenses, at Rs 12,373.88 crore during the Q3, accounted for nearly 91 percent of its net sales.

Besides, its finance cost also increased by 50.84 percent to Rs 1,068.37 crore in the quarter, thereby squeezing the profit growth.

On a standalone basis, Adani's net profit during the quarter was down by over 40 percent to Rs 29.85 crore.

However, its standalone income went up by nearly 175 percent to Rs 3,301 crore.

"Our overall performance is expected to improve substantially as the additional capacities get operational and the much awaited power sector measures are implemented," Adani group chairman Gautam Adani said in a separate statement.

Adani Group CFO Devang Desai said: "Our overall performance has been good with substantial contribution from coal trading and ports which have offset the continuing downward pressure from the power business."

During the quarter, the company also secured 'Consent to Operate' for Parsa Kente coal block in Chhattisgarh from Chhattisgarh Environment Conservation Board, it said, adding that the company has started the work for extraction of coal and will start the supply of coal in the subsequent quarter."

Adani Enterprises has also completed coal mining exploration programme at the Carmichael mine in Australia and established Joint Ore Reserves Committee's (JORC) standard resource of 9.4 billion in the Galilee Basin Tenement.

"The Environmental Impact Statement (EIS) for the Carmichael Coal Mine and Rail Project was submitted to Queensland Government. The EIS has been released by Queensland Government for public consultation," it added.

During the quarter, company's subsidiary, Adani Power Maharashtra has signed fuel supply agreement of 2.3 million tonnes (MT) of coal for its Tiroda power plant with South Eastern Coalfields Ltd, it said.

The company currently has 9 MT of FSA for Mundra and Tiroda Power Projects.

According to Desai, "in the ensuing quarters the power business will get revived as the larger sectoral issues of coal linkages, power evacuation and tariff revisions are suitably addressed, ensuring investment sustainability."

In terms of performance of the different business segments of the company, its revenues from trading were up over 34 percent to Rs 6,596.38 crore, while revenues from agro business increased by 77 percent to Rs 2,333 crore.

Shares of the company closed Friday at Rs 245.80 apiece on the BSE, down 1.62 percent from the previous close.


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