Adani Enterprises Ltd (AEL) is exiting the real estate business, the flagship company of diversified conglomerate Adani Group revealed on Thursday. Its board of directors has already approved a proposal to divest holding in Adani Infrastructure Development Ltd, (AIDL), a step-down subsidiary of AEL. The offloading of its holding is expected to create more liquidity for Adani Group’s core business such as coal, power and ports.
“The proposal to divest holding in the real estate business is subject to requisite approvals and clearances,” AEL executive director Devang Desai said. “The move will infuse additional liquidity in the company. We would be able to focus on our core businesses.”
AEL, through AIDL, has so far invested Rs 2,000 cr for various realty projects (both residential and commercial) located in Mumbai and Gurgaon (off Delhi), besides this city. “We may consider total exit from the whole portfolio of our real estate projects, including Mumbai. The real estate business has a negligible share in our total revenues,” informed Desai, who is also CFO of the group.
Profit down 14 per cent
AEL’s net profit was down 14 per cent at Rs 407 cr for the third quarter ended December 31, as against Rs 474 cr in the corresponding period of FY11.
AEL attributed the drop to foreign exchange losses. Net sales stood at Rs 9,038 cr, up 60 per cent, over Rs 5,642.6 cr in the corresponding period last year.
AEL shares closed with a loss of 4.3 per cent at Rs 392.6 on the Bombay Stock Exchange.