On the back of higher contribution from its coal, ports and power businesses, Gautam Adani-owned Adani Enterprises Ltd (AEL) posted a 550.8 per cent growth in its consolidated net profit for the quarter ended December 31, 2014.

Flagship company of Adani Group, AEL saw its consolidated net profit after taxes, minority interest and share of profit/(loss) of associates rise to Rs 443.8 crore for the third quarter of this financial year from Rs 68.2 crore of the corresponding quarter last year.

The company’s consolidated total income grew by 29.5 per cent to stand at Rs 18,074.9 crore for the quarter under review, up from Rs 13,954.4 crore for the same quarter the previous year.

On a standalone basis, AEL posted a net profit of Rs 120.75 crore for this quarter as compared to net loss of Rs 42.74 crore for the quarter ended December 2013.

The standalone total income increased by 35.3 per cent at Rs 4,519.07 crore for the quarter under review, from Rs 3,339.90 crore for the quarter ended December, 2013.

According to Ameet Desai, chief financial officer, Adani Group and executive director, Adani Enterprises, the company’s performance improved due to higher contribution from coal, ports and logistics, and power businesses.

On Friday, the company announced a mega restructuring plan under which port operations of Adani group has been consolidated under Adani Ports & Special Economic Zone (APSEZ) and power business under Adani Power Ltd (APL).

The shareholders of AEL will get direct shareholding in the port and power while the group’s transmission company will be listed on the stock exchanges.

“The shareholders would continue to participate in the growth and progress of Adani with direct shareholding in the respective listed In addition, they would also get shares in one of the largest private sector transmission with over 5,000 circuit km of transmission lines across western, northern and central regions of India. It also allows shareholders to participate individually in the growth areas of resources, energy and logistics,” Desai said.

As a result of the demerger of the port business of AEL into APSEZ, the Adani group said APSEZ will issue and allot new equity shares to the equity shareholders of AEL in the ratio of 14,123 equity shares in APSEZ for every 10,000 equity shares held by the equity shareholder in AEL. The equity shares held by AEL in APSEZ to be cancelled pursuant to the Scheme.

On the other hand, following the demerger of the power business of AEL into APL, APL will issue and allot new equity shares to the equity shareholders of AEL in the ratio of 18,596 equity shares in APL for every 10,000 equity shares held by the equity shareholder in AEL as of the record date for the purpose of the Scheme.

The equity shares held by AEL in APL to be cancelled pursuant to the scheme.

“The Scheme of Arrangement will simplify corporate structure and is a decisive step towards unlocking the potential value of the Adani Group Companies. The Scheme of Arrangement will drive next level of value creation, competency, decision making and would be able to accelerate the business growth. These developments and positive macro-economic environment re-affirm our commitment towards securing infrastructure and energy need of the country,” said Adani Group chairman Gautam Adani in an official communique.

Continuing to grow its investments, the company recently also signed memorandums of understanding (MoUs) with SunEdison Inc and Australian energy major Woodside Energy. While the MoU with SunEdison Inc is for a joint investment of $4 billion in setting up India's largest integrated solar photovoltaic manufacturing facility in Mundra, Gujarat, the one with Woodside Energy is for exploring business opportunities across a broad spectrum in the oil and gas sector in India.