Adani Enterprises reported a 14.15% dip in net profit at INR 407.28 crore for the third quarter ended December 31st 2011 on account of forex losses.

The Adani Group flagship company, which has interests in energy and logistics sectors, had posted net profit of INR 474.41 crore in the corresponding quarter of 2010-11. Consolidated net sales, however, rose by about 60% to INR 9,014.73 crore during the quarter under review vis a vis INR 5640.42 crore in Q3 FY'11. The interest and finance charges of the company in the October-December period rose by more than three times to INR 725.65 crore, largely due to INR 335 crore forex loss incurred during the quarter. Meanwhile, AE has announced its board's decision to exit from the real estate holding company (Adani Infra Development Pvt Ltd).

Mr Devang Desai CFO of Adani Enterprises told reporters that "The board has approved to divest its real estate business primarily to focus on our three main verticals power, port and mining, and also to infuse additional liquidity into the system. AE will exit from the real estate business. We will hive off the stake in the holding company (Adani Infra) for which the process will start soon.”

The Group has invested over INR 2,000 crore in the real estate business. It has undertaken an overall development of around 40 million square feet of residential and commercial space in Gujarat and Maharashtra. The company, operating on mine developing and operating model, expects its coal mining operations in India to commence from middle of this year.

(Sourced from PTI)