Adani Enterprises Ltd (AEL), the flagship company of Adani Group, reported an increase of 169 per cent in net profit and two per cent in net sales in the financial year ended March 31, compared to the corresponding period last fiscal, a company official said on Thursday.
The board of directors has recommended a 100 per cent dividend to shareholders — Re 1 a equity share priced at Re 1.
On Thursday, AEL's share price at the BSE closed 1.46 per cent up at Rs 635.20.
In 2010-11, while the consolidated net sales grew by two per cent to Rs 26,405 crore (Rs 25,890 crore), the net profit grew 169 per cent to Rs 2,476 crore (Rs 919 crore), Mr Devang Desai, Executive Director and Group CFO, told reporters here.
Phasing out helps
The rise in revenue was largely due to the gradual phasing out of the traditional businesses — petrochemicals, energy products and precious metals, besides retail — other than coal and agri-products and due to higher realisation from port and power businesses.
Over the next four to five years, the Adani Group plans to invest $10-12 billions on its various projects, he said.
Net sales in the fourth quarter of 2010-11, ended March 31, increased by 16 per cent to Rs 9,112 crore (Rs 7,826 crore), while the net profit rose by 173 per cent to Rs 928 crore (Rs 340 crore).
AEL's business in its main vertical, coal trading, increased by 16 per cent to 33.47 million tonnes (28.77 mt). With Adani Power Ltd proposing to increase thermal power production from 1,980 MW to 6,600 MW this year, AEL is expecting to triple its coal business to about 12 mtpa, he added.
Mr Gautam Adani, Chairman, said, the company aimed at emerging as India's largest private sector energy and logistics conglomerate. The company is now being positioned as an integrated infrastructure player encompassing the entire value chain from captive coal mines to coal trading, managing ports and logistics, power generation and power transmission.