Adani Enterprises on Friday reported a 83.61 per cent decline in consolidated net profit at Rs 68.20 crore for the quarter ended December, blaming non-availability of domestic coal and delay in compensatory tariff in power business as main reasons its poor performance.
The flagship firm of Adani group had reported a net profit of Rs 416.11 crore in the corresponding quarter of the previous fiscal year.
Net sales during the quarter under review were flat at Rs 13,644.24 crore as against Rs 13,610.29 crore in the third quarter of FY13, it said in a filing to the BSE.
Its mainstay, the trading business reported an over 26 per cent decline in revenues at Rs 4,846.88 crore in the last quarter, while income from port business was down 33 per cent at Rs 737 crore.
"...our performance was affected by non-availability of domestic coal and delay in compensatory tariff in our power business," Adani Enterprises said in a separate statement, without giving further details.
The company expects to achieve thermal power generation capacity of 9,240 MW by the end of the ongoing fiscal year (FY14). It currently has a total commissioned capacity of 7,920 MW.
Integrated business model of the company, combining resources, logistics and energy, has an in-built resilience and adaptability and has been tested and validated in last 2 years, wherein power business was nurtured and supported, chairman Gautam Adani said.
"In the ensuing quarters, we will enjoy these synergy benefits as we see marked improvement in power business on account of tariff revisions, full availability of plant capacity and better business and growth environment," he further said.
Adani's units in Maharashtra and Rajasthan, managed through Adani Power, had signed MoUs with Mahanadi Coalfields for supply of domestic coal of 3.4 million tonnes (MT) each. With this, the company currently has 18.6 MT of domestic coal availability for Mundra, Tiroda and Kawai Power Projects, it said.
The company's overall improved quarterly performance has set the direction for ensuing quarters as it sees greater contribution from the power business, according to Adani Group CFO Devang Desai.
"We continue to focus on operating cost reductions and revenue enhancements and closely nurture the capital spends in all our businesses," Mr Desai added.
Among the businesses, Mundra Port continues to be number one commercial port of India handling 74.73 MT of Cargo in the first nine months of the fiscal. Besides, Adani Ports completed coal terminal at Visakhapatnam Port 8 months ahead of schedule and has commenced liquid cargo operations at Hazira Port.
Project execution of ports at Goa is nearing completion and Tuna Tekra at Kandla port is as per schedule, it added.