New Delhi: Indian diversified business giant Adani Group's flagship firm Adani Enterprises Ltd's fiscal fourth quarter (January-March) consolidated net profit fell 66.7% to Rs 3.09 billion from Rs 9.28 billion in the year ago period as higher fuel costs led to Rs 2.9 billion loss in its power business.
The revenue of the company, however, grew 16.42% to Rs 105.94 billion in the fourth quarter as compared to Rs 91 billion in the same quarter previous fiscal 2010-11, it said Monday.
The cost of raw materials declined 38.9% to Rs 8.49 billion in the quarter ended March 31, 2012 as against Rs 13.9 billion in the previous quarter last fiscal.
The company's coal and port businesses performed strongly during the quarter. However, the power business impacted the profitability, Devang S Desai, executive director and chief financial officer of Adani Enterprises, said.
All the three verticals are expected to show robust growth in the current financial year 2012-13, he added.
"We are targeting out coal trading business to reach over 45 million tonnes, the port business should cross the 125 million tonnes mark and the power sector we will complete our Maharashtra project of 3,300 megawatt (MW), and we will also complete our Rajasthan project of 1,320 MW making us the total capacity going up to 9,300 MW which includes the solar project of 40 MW which we commissioned this year."
Coal scarcity has dented the power generation capacity of Indian power plants that depend hugely on coal for electricity production. India's power sector consumes about two-thirds of the country's coal output. Supply constraint has forced power producers to import the fossil fuel, which is far more expensive than the domestic coal.
Total expenses of Adani Enterprises increased by 28.7% to Rs 99.5 billion in the quarter from Rs 77.3 billion in the same period last fiscal 2010-11.
Shares of Adani Enterprises closed at Rs 238.9, up 3.38%, on the Bombay Stock Exchange today.
Copyright Contify.com
