April- June quarter is turning into a nightmare for Adani group. Earlier, group’s thermal power company, Adani Power posted a net loss of Rs 1,198.29 crore on back of heavy interest payments. And on Thursday, Adani Enterprises, flagship company of the group, announced its Q1 results.
Adani Enterprises for Q1 reported a net loss of Rs 278.3 crore as compared to a net profit of Rs 402.88 during the same quarter in the previous fiscal. While company’s total rose by 5 per cent to Rs 11,547 crore from Rs 11,036 crore in Q1 FY13.
The company through an official release stated that the results were impacted by higher forex loss and weak power business. Commenting on the same, company’s Chief Financial Officer and Executive Director, Devang Desai said, “Quarterly financial performance has been adversely affected due to sudden currency volatility and continuing constraints of coal availability, transmission bottleneck and tariff related issues in the power business.”
During Q1 FY14, the company has registered foreign exchange losses of Rs 417.68 crore. Volatile currency was not the only concern for the company during the previous quarter. Company’s finance cost has increased by over 58 per cent to Rs 1,082.76 as compared to Rs 682.41 crore in Q1 FY13. As per the fourth quarter of the previous financial year, the total debt on the company was Rs 62,000 crore. Company’s derivative loss also doubled from Rs 244.78 crore during the previous fiscal to Rs 527.83 crore in Q1 FY14.
On the other hand, earnings before interest, tax, depreciation & amortisation (EBITDA) rose by 53 per cent to Rs 1,937 crore and their power business achieved 7,260 mega watts operational capacity. Company’s Mundra Port was also named as the best commercial port, a position which till now was held by Kandla Port.