Adani Enterprises consolidated net profit remains flat at Rs 364 crore

Adani Enterprises reported flat consolidated net profit of Rs 363.71 crore for the June quarter ended, 2016 (Q1FY17). 

Gautam Adani, Chairman of Adani Group said, "Adani Enterprises continue to focus on the sectors of national interest through presence in critical and often under penetrated spaces. The investment climate in the country is building up and the intent of government to pursue economic reforms is clearly visible. We remain committed to our investment plans in renewable and domestic mining sectors as they align with nation priorities.”

On consolidated basis, the company did not see much excitement. It’s total income was at Rs 8918.69 crore, a gradual of 0.35% from Rs 8886.87 crore in June 2015.

Also, its operating profit (EBITDA) declined by 4.33% to Rs 545.31 crore against Rs 570.05 crore in Q1FY16. It’S operating profit margin (OPM) was at 6.11%, contracting by 30 basis points yoy (year-on-year).

The consolidated top-line and bottom-line was effected by weak performance from trading and city gas distribution segments.

On segment wise revenue break-up, the trading segment dropped by 3% to Rs 8966.03 crore versus Rs 8886.87 crore in June 2015. While City gas distribution segment declined by 10.34% to Rs 260.82 crore over corresponding period of the previous year.

Where the consolidated performance of company was weak, its standalone recorded a robust growth.

In regards to standalone basis, the company recorded net profit of Rs 196.91 crore, clocking nearly three-times growth year-on-year. However, its total income of Rs 2145.87 crore in Q1FY17,declined by 10.80% yoy.

Not only net profit, it’s operating profit of Rs 243.55 crore, jumped over two-folds yoy. It operating profit margin (OPM) was at 11.34%, expanding by 681 basis points yoy.

Ameet Desai, CFO Adani Group and Executive Director of Adani Enterprises said, "We maintained our earnings growth trajectory during this quarter. This is testimony of intrinsic strength of our business portfolio. The government spending on infrastructure and other development projects, well progressing monsoon and pay revisions shall drive an uptick in the investment cycle and energy demand leading to our improved performance.”

The company’s coal mining volume grew by 122% to 2.1 million metric tonnes (MMT).

The share price of the  Adani Enterprise closed at RS 79.85 above 2.83%.