Adani Enterprises slips after posting Q1 net loss of Rs 149 cr

Adani Enterprises declined 1.86% to Rs 182.25 after consolidated net loss stood at Rs 148.65 crore in Q1 June 2020 compared with net profit of Rs 498.67 crore in Q1 June 2019.

Consolidated net sales tanked 50.1% to Rs 5,265.19 crore in Q1 June 2020 as against Rs 10,561.37 crore in Q1 June 2019. Pre-tax loss stood at Rs 137.54 crore in Q1 June 2020 compared with pre-tax profit of Rs 770.60 crore in Q1 June 2019. Current tax expense for the quarter tanked 95.6% at Rs 7.36 crore as against Rs 168.21 crore in Q1 June 2019. The result was announced post market hours yesterday, 6 August 2020.

Volumes across the segments were impacted owing to lower power demand and logistics issues due to COVID-19 pandemic. EBIDTA for the quarter dropped 66.40% to Rs 301 crore in Q1 FY21 from Rs 896 crore in Q1 FY20.

With continued lockdown and restrictions during this quarter, Adani Enterprises' volumes across business segments have been affected. The company resumed its operations following government guidelines. The operational performance of the businesses continue to recover in phased manner towards pre COVID-19 level.

Commenting on the Q1 performance, Gautam Adani, the chairman of Adani Group, has said that: "Adani Enterprises Limited has always focused on businesses which are closely aligned to the lifeline of the economy, providing essential services to enhance the quality of life of citizens and addressing critical national infrastructure priorities. In midst of the pandemic, we see opportunity to expand our footprint and we continue to trace our path towards growth with goodness. Our focus continues to remain in optimizing capital utilization, strengthening the organizational structure to mitigate risk ultimately laying the foundation for consistent value creation."

Adani Enterprises (AEL) has a diversified business portfolio comprising integrated coal management and mining services, solar modules manufacturing as well as edible oil business.

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