Adani Enterprises posts quarterly loss on US settlement charge

India’s Adani Enterprises posted another quarterly loss on Wednesday, due to a one-time charge from a settlement agreement with the U. S. Treasury’s Office of Foreign Assets Control over an investigation involving shipping of Iranian gas. The flagship firm of the billionaire Gautam Adani-led conglomerate posted a consolidated net loss of 11. 60 billion rupees ($121. 3 million) in the quarter ended June 30, with the one-time charge amounting to 26. 44 billion rupees. Adani Enterprises’ profit before exceptional items and tax dropped about 12% to 12. 95 billion rupees due to a multifold surge in cost of materials consumed. Total expenses climbed about 54% to 322. 52 billion rupees, as the cost of materials consumed surged to 142. 55 billion rupees from 33. 93 billion rupees a year ago. First quarter results were “impacted due to higher operating cost on account of increased fuel prices due to global volatility, ” the company said in an exchange filing. India’s Adani says not evaluating proposal to enter airline business Average global Brent crude oil prices were about 45% higher than in the year-ago quarter due to the Middle East conflict. Additionally, a 59. 8% rise in interest and other finance cost and employee benefits that were 13. 6% higher contributed to the surge in expenses. Adani’s net loss widened to 4. 36% from 0. 50% the previous quarter, when it had reported its first loss in 17 quarters. The company’s revenue from operations rose about 50% to 329. 24 billion rupees, helped by a multifold revenue jump in its copper business due to capacity ramp-up. However, revenue from Adani Enterprises’ mainstay coal trading segment dropped 7%, and its new energy business, which comprises solar manufacturing and wind turbine businesses, fell 2%. Its booming airport business posted an over 35% rise in quarterly revenue.

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