Adani Enterprises consolidated income rose by 15% to Rs 11,036 cr
Ahmedabad, August 9, 2012: Adani Enterprises Ltd, the flagship company of the Adani Group – a global integrated player, today announced its results for the first quarter ended June 30, 2012.
The consolidated income rose by 15% to Rs 11,036 crore in Q1 FY13, against Rs 9,596 crore of Q1 FY12. While, the consolidated EBIDTA increased to Rs 1,267 crore against Rs 1,222 crore in the corresponding quarter last year, driven by higher contribution from the port business. The consolidated net profit stood at Rs 403 crore in the first quarter ended June 30, 2012 compared to Rs 570 crore in same period last year.
While the port and coal trading businesses continue to grow on a steady basis, higher fuel costs due to expensive imports resulting out of lack of domestic coal supply continued to impact our power business.
Commenting on the results, Mr Gautam Adani, Chairman Adani Group, said, “Adani Enterprises continues to reap benefits of synergy & integration of their core businesses in Resources, Logistics and Energy. The quarterly performance is adversely affected by power sectoral issues which are beyond our control such as short fall against linkage of domestic coal, high prices of imported coal and limited availability of transmission line. We are working with the concerned authorities to arrive at a solution and are confident that our power business shall generate the envisaged return shortly, creating value for its stakeholders.”
Mr Devang Desai, CFO Adani Group and Executive Director, Adani Enterprises, said, “We have achieved the highest volume in all our businesses and continue to be market leaders in our coal trading, power generation & port business. We expect the overall performance from our businesses to improve substantially as the recent investment in power, port and mining start generating returns and are fully committed in creating sustainable value for all its stakeholders.”
1. Coal Mining
Adani Enterprises is set to commence MDO operations in this quarter in Chhattisgarh.
Our Australian mining venture business is well on track. The company has submitted the draft EIS to Coordinator General for Carmichael Mine & Rail projects in Queensland, Australia. The environment and other permissions are as per the schedule and are expected by the last quarter of this financial year.
We are also expecting the financial closure during this year and will start construction of mine, rail and port capacities. The operations of overburden removal at Australian mine is expected to begin in November 2013.
2. Port Operations
During the quarter, Adani Ports and SEZ (APSEZ) continued with the outstanding performance and retained a prominent position in the market. Backed by continuous growth in volumes and commissioning of new port projects in this fiscal will give a further impetus to emerge as a world class port infrastructure operator.
The cargo growth was 9% in Adani Ports while there was de-growth of 6% in all other major ports put together. The company also increased its market share to over 11%, up by 1%. Even on the container side the company has outperformed other container ports by registering a 25% growth compared to no growth at other container terminals. Adani Ports’ market share in containers has risen to 18%, up by 3%. APSEZ emerged as the only private sector port operator with presence across six ports in India.
3. Power Generation
Adani Power (APL) commissioned India’s largest private sector High Voltage Direct Current transmission system that traverses along three states – Gujarat, Rajasthan and Haryana.
Adani Power has signed a fuel supply agreement with Coal India Ltd for its 3 units of 660 MW each at the Mundra Power plant. Adani Power has filed adjudication petition with the Regulatory Commission which was heard on 19th July 2012. Regulatory Commission heard it and directed Gujarat and Haryana Utilities to furnish its response in the matter within three weeks from the date of hearing and one week thereafter for APL to file rejoinder. Next date of hearing is 28th August 2012.
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About The Adani Group
The Adani Group is one of India’s leading business houses with revenue of over $8 billion for financial year 2012.
Founded in 1988, Adani has grown to become a global integrated infrastructure player with businesses in key industry verticals – resources, logistics and energy. The integrated model is well adapted to the infrastructure challenges of the emerging economies. It multiplies the benefit of synergy and economies of scale both for the Group and for the customers.
We live and work in the communities where we operate and take our responsibilities to society seriously. The Group protects biodiversity in ecologically sensitive areas like Mundra and undertakes initiatives to reduce CO2 emissions. At Adani, we deliver benefits to our customers and customers’ customers.
Resources means obtaining coal from mines and trading; in future it will also include oil and gas production.
Adani is developing and operating mines in India, Indonesia and Australia as well as importing and trading coal from many other countries. Currently, we are the largest coal importer in India. We also have extensive interests in oil and gas exploration.
Extractive capacity is scheduled to increase from 3 million MT of thermal coal in 2011 to 200 million MT per annum by 2020, making Adani one of the largest mining groups in the world.
Logistics denotes a large network of ports, Special Economic Zone (SEZ) and multi-modal logistics – railways and ships.
Adani owns and operates three ports – Mundra and Dahej in India and Abbot Point in Australia. The Mundra Port, which is the largest private port in India, benefits from deep draft, first-class infrastructure and SEZ status.
Adani is also developing ports at Hazira, Mormugao, Visakhapatnam and Kandla in India and Dudgeon Point in Australia. Our aim is to increase our annual cargo handling capacity from 78 million MT in 2012 to 200 million MT by 2020.
Energy involves power generation & transmission and gas distribution.
Adani is the largest private thermal power producer in India. Our power generation capacity is expected to increase from 4,660 MW in 2012 to 10,000 MW by the end of 2013.
We are currently developing six power projects for generating 16,500 MW of power across Gujarat, Maharashtra, Rajasthan and Madhya Pradesh. Our aim is to generate 20,000 MW by 2020.