Adani Enterprises Ltd (AEL), flagship company of the Ahmedabad-based Adani Group, has registered a net loss of Rs 73.6 crore on a standalone basis for the January-March quarter of 2012-13. It had a profit of Rs 170.5 crore in the corresponding period a year before.
However, total standalone income for the period jumped 130 per cent from Rs 1,555 crore for the quarter ended March 31, 2012, to Rs 3,587 crore for the fourth quarter of 2012-13.
According to the statement filed with the stock exchanges, AEL's expenses towards purchase of stock-in-trade increased 169 per cent from Rs 951.7 crore in the quarter ended March 2012 to Rs 2,560 crore in the FY13 quarter.
For 2012-13, the standalone net profit was Rs 520 crore as against Rs 362 crore in the previous financial year. Total standalone sales increased from Rs 5,744 crore for the year ended March 2012 to Rs 12,504 crore for the year ended March 2013, a rise of 117 per cent.
Despite weak standalone result, analysts maintained positive for Adani Enterprises. "Adani has a strong business portfolio. A loss in an isolated quarter doesn't affect the company's overall fundamentals. However, on consolidated basis AEL having interests in capital intensive industries, the return takes time," said Kishor P Ostwal, chairman and managing director, CNI Research Ltd.
On a consolidated basis, AEL posted net profit of Rs 474 crore for the quarter ended March 2013 as compared to Rs 309 crore for the quarter ended March 2012, an increase of 53 per cent on a year-on-year basis. The group's total income jumped from Rs 10,825 crore for the quarter ended March 2012 to Rs 11,821 crore for the quarter ended March 2013.
For 2012-13, consolidated net profit was Rs 1,613 crore, against Rs 1,839 crore in the previous year, a decline of 12 per cent. Total consolidated income of the group for the year was Rs 47,352 crore, against Rs 39,904 crore in 2011-12.
The company's consolidated interest cost has increased from Rs 1,825.6 crore in 2011-12 to Rs 3,493 crore for 2012-13, up over 90 per cent.
According to company officials, as on March 31, 2013, AEL had consolidated gross debt of Rs 69,300 crore, of which consolidated net debt on books is about Rs 62,226 crore. Of this, net long-term debt is Rs 49,314 crore, which puts the company's consolidated net long-term debt-to-equity ratio at 2.
"Our power business went through trying times, overcoming structural bottlenecks of coal availability, increased prices and constraints on power evacuation. With focused efforts, we expect an early resolution on these matters to revitalise the sector," stated Devang Desai, chief financial officer, Adani Group and executive director, Adani Enterprises.
The board of directors has approved the re-appointment of Gautam Adani as executive chairman of the company for a further five years with effect from December 1, 2013, subject to the approval of members, the company said in its BSE filing.
On the results, Adani said, "With the commencement of our mine development and operation at Parsa Kante, Chhattisgarh, we have repeatedly demonstrated our excellence at seamless project execution and operational stabilisation among uncertainties."
Adani Enterprises' shares closed on Monday at Rs 243 apiece on BSE, up 3.3 per cent from its previous close.