Adani Enterprises Ltd, the flagship company of the Adani Group, on Thursday said its consolidated net loss in the first quarter of 2012-13, ended June 30, was Rs 278 crore due to mark-to-market provision for rupee depreciation, among other reasons.
The consolidated total income for Q1FY14 rose 5 per cent to Rs 11,547 crore (Rs 11,036 crore) compared to Q1FY13, a company official said here.
Devang Desai, CFO, Adani Group and Executive Director, Adani Enterprises, said the quarterly financial performance has been affected due to sudden currency volatility and continuing constraints of coal availability, transmission bottlenecks 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.”
Besides mark-to-market provision for rupee depreciation, the other reasons for net loss were non-cash items like depreciation, provision for deferred tax and higher imported coal price due to limited availability of domestic coal in power business.
In the first quarter, AEL clocked 9.5 million tonnes (mt) of coal trading, handled 26.7 mt of port cargo and sold 8.1 billion power units.
Gautam Adani, Chairman, Adani Group, said coal trading has sustained its leading position and power business has achieved 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.”
The Adanis’ port at Mundra emerged as the number one commercial port in India, with a rise in cargo handling of 35 per cent to 23.59 mt (17.42 mt) in Q1. During the quarter, Adani Ports and SEZ Ltd raised Rs 1,000 crore via institutional placement programme. Recently, this company formed a joint venture with the Swiss-based Mediterranean Shipping Co to operate the third container terminal at Mundra.
Also, Adani Power Ltd raised Rs 2,542 crore by way of preferential allotment of shares to promoters at Rs 53.11 per share, increasing promoters holding to 75 per cent. The company expects to achieve thermal power generation capacity of 9,240 MW by FY14.