Adani Enterprises posts Rs 69.81 crore Q1 net profit

Financial performance came on the back of improved margins in its coal trading, mine development and agro business

Flagship company of the Ahmedabad-based conglomerate Adani Group, the Adani Enterprises Limited (AEL) registered a standalone net profit of Rs 69.81 crore for the quarter ended June 30, 2015. The company had seen its net profit for the said period stand at Rs 1.03 crore last year.

The standalone total income of AEL for the first quarter of fiscal 2015-16 stood at Rs 2572.68 crore whereas the same was at Rs 4311 crore for the quarter ended June 30, 2014.

According to Ameet Desai, CFO, Adani Group and Executive Director, Adani Enterprises Ltd., the financial performance came on the back of improved margins in its coal trading, mine development and operations and agro business.

"With the progress policy measures by the Government, we believe that Adani Enterprises is better placed to tap the growth potential in domestic mining and renewable energy space. We remain committed to leverage these opportunities and deliver sustainable growth," Desai added.

On May 7, 2015 the Gujarat High Court sanctioned a composite scheme of arrangement which saw de-merger of the group's port, power and transmission undertakings Adani Ports and Special Economic Zone Limited (APSEZ), Adani Power Limited (APL), and Adani Transmission Limited (ATL) from AEL and merger of Adani Mining Private Limited (AMPL) into the flagship company with effect from April 1, 2015.

"In view of above, the results of the current period reported are after giving effect of the Scheme as on appointed date i.e. April 01, 2015 and hence previous period numbers are not comparable to that extent," the company stated in an official communique.

Commenting on the results, Gautam Adani, chairman, Adani Group said, "Post de-merger, Adani Enterprises continue to focus on renewable energy, coal trading, mine development and operations, agro and CGD. This focused approach will drive next level of value creation and would accelerate the business growth. We have embarked upon renewable energy space in line with the national objective."

On consolidated basis, the group posted a net profit after taxes, minority interest and share of profit of associates of Rs. 379.67 crore for the quarter ended June 30, 2015 where as the same was at Rs. 556.74 crore for the quarter ended June 30, 2014.

On the other hand, the consolidated total income stood at Rs 11543.50 crore for the quarter ended June 30, 2015. For the first quarter of previous fiscal 2014-15, the consolidated total income was at Rs 16671.55 crore.