Adani Enterprises Q1 profit rises to Rs 557 crore

Adani Enterprises, the flagship company of the Adani Group, reported a profit after tax of Rs 557 crore (Rs 5.57 billion) for the first quarter ended June 30, 2014 on the back of a 43 per cent jump in revenue.

The company had posted a loss of Rs 278 crore (Rs 2.78 billion) in the corresponding quarter of the previous financial year, Adani Enterprises said in a statement.

"Our improved performance has set the direction of growth as we see greater contribution from completed projects in our ports, power and mining verticals," said Gautam Adani, Chairman of Adani Group.

Consolidated total income for the period increased by 43 per cent to Rs 16,524 crore (Rs 165.24 billion) as compared to Rs 11,547 crore (Rs 115.47 billion) in the same period last fiscal.

"With efforts from new government to address the concerns of fuel availability, rail infrastructure, transmission constraints, project approvals and debottlenecking of mining sector, we see greater growth opportunities in the sectors we operate," Adani said.

The company said in the statement that it expects to achieve thermal power generation capacity of 9,240 MW soon.

"The acquisition of the Dhamra port was also completed in the quarter and it handled 4.20 MMT cargo during that period, a growth of 36 per cent over the corresponding quarter last year," the statement said.

The capacity expansion work is already in progress. Also, Dahej port volumes grew by 28 per cent and the Hazira port volumes increased by 85 per cent on a year-on-year (YoY) basis," it added.

France-based CMA CGM Group has signed an agreement with AdaniPorts and Special Economic Zone (APSEZ) for development of a new common user Container Terminal at MundraPort.

"The JV with CMA CGM will result in an additional capacity of 1.4 million TEUs (Twenty-Foot Equivalent Unit) and the terminal will be operational in the next 24 months, the construction work has already started," the statement said.

This will make Mundra the country’s largest container port with a total capacity of 5.5 million TEUs, the statement added. Shares of Adani Enterprises, on Friday, closed at Rs 453.90, down 1.87 per cent on the BSE.