Mumbai: Diversified Adani Enterprises Ltd’s said on Thursday its consolidated quarterly net profit nearly tripled, boosted by high demand for coal, power and logistic facilities in Asia’s third largest economy.
The company, headed by billionaire chairman Gautam Adani, reported a consolidated Jan-March net profit of Rs 9,280 crore against Rs 3,390 crore a year ago.
Net sales rose to Rs 9,110 crore from Rs 7,826 crore, it said.
Adani’s coal trading business, power generation subsidiary Adani Power and ports arm Mundra Port and Special Economic Zone , have all shown strong growth boosting the parent’s performance, executive director Devang Desai said.
The conglomerate, which also has interests in real estate and agroproducts, has been expanding across the globe through acquisitions and tie-ups.
Earlier this month unit Mundra Port agreed to buy Abbot Point Coal Terminal in Australia for $2 billion in an all-cash deal to tap into growing coal traffic in overseas market.
Last August, Adani agreed to invest $1.65 billion in an Indonesian coal port and railway that can source fuel for its Indian power plants and help open up Indonesia’s hard-to-reach coal resources.
The same month, Adani sealed a deal with Australia’s Linc Energy to buy its Galilee coal project.
Adani recently synchronised a 660 megawatt unit at its Mundra power plant in Gujarat, which currently produces 1,980 MW of power. The Mundra plant plans to reach a power generation capacity of 4,620 MW by the end of the current fiscal, Desai said.
The group is implementing 18,500 MW of power generation projects at seven locations in India with the objective of raising it to 20,000 MW by 2020, it said in a statment.
Adani is also investing in cross country power transmission lines to evacuate power from its generation facilities.
The firm has bought shipping vessels and plans to develop more ports across the country to strengthen its logistics network.
Desai said the founding Adani family will be required to dilute stake in Adani Enterprises to bring down their holding to 75 percent as required by Indian regulatory laws.
Indian laws makes it mandatory for listed companies to have a public shareholding of at least 25%. The Adani family holds 78.5% at present.
He said a decision on the mode of fund-raising will be taken in the next two months.
Adani Enterprises shares closed up 1.62% at Rs 637.55 in a weak Mumbai market.