Adani Enterprises posts net loss of Rs 135 cr in Q1

Company's finance cost jumps by 235 per cent to Rs 158 cr

Adani Enterprises Ltd (AEL), the flagship company of billionaire Gautam Adani-promoted Adani Group, on Thursday posted standalone net loss of Rs  135.9 crore for the quarter ending June 30, 2013 as compared to net profit of Rs  421.63  crore in the corresponding quarter last fiscal.

Company’s finance cost for the quarter has jumped over 235 per cent on year-on-year basis to Rs  158 crore for the quarter against Rs  47 crore in the corresponding period last year.

For the first quarter of 2013-14, the total income of AEL on standalone basis rose to Rs  3,032.22 crore from Rs  2,938.18 crore in the same quarter last year. The company has registered loss for the second consecutive quarter.

Its losses nearly doubled to Rs  135.9 crore from Rs  73.59 crore for quarter ended March 31, 2013.

On consolidated basis, the company posted a loss of Rs  278.3 crore for the quarter ended June 30, 2013 as compared to net profit of Rs  402.88 crore in the corresponding quarter in 2012-13.

For the same period company's total income rose to Rs . 11,835.54 crore for quarter ended June 30, 2013 from Rs  11,222.28 crore in the same period last fiscal.

Commenting on the results Chairman Adani Group, GautamAdani, said,“We have experienced a highly rewarding quarter with Mundra Port emerging as no. 1 port, coal trading sustaining its leading position and power business achieving 7,260 MW operational capacity. We are confident of overcoming the present difficulties faced by the power sector and enriching its financial performance in the ensuing quarters. Our integrated business model of resources, logistics and energy sectors is best suited to reap benefits of sustainable growth.”

Speaking on company's losses in the first quarter of FY14, Devang Desai, CFO, Adani Group and Executive Director, Adani Enterprises, said, “Our quarterly financial performance has been adversely affected due to sudden currency volatility and continuing constraints of coal availability, transmission bottleneck and tariff related issues in the power business. We follow a judicious currency hedging policy in line with our business aligned financial strategy. With focused efforts, we shall ensure sustainable returns from the power business and improve our overall performance.”

AEL shares ended at Rs  166.35 marginally down by 0.33 per cent from previous close on the Bombay Stock Exchange (BSE).