Monday, Dec 4 2023 | Time 01:53 Hrs(IST)
Business Economy

Mining services behind excellent Q1 report for Adani; Talabira, Parsa Kente among significant contributors

Mining services behind excellent Q1 report for Adani; Talabira, Parsa Kente among significant contributors

Aug 27, 2021 - In yet another impressive performance that will surely boost investors’ confidence, Adani Enterprises posted solid numbers in the first quarter of FY22. Net consolidated profit stood at Rs. 265.60 crore in comparison to the net loss of Rs. 65.67 crore for the same quarter last year.

Despite the second coronavirus wave that dashed any hopes of a quick recovery, the Gautam Adani-led conglomerate has held its ground admirably. The company rode the high generated by its established businesses, especially the solar and mining operations. Mining productivity has steadily increased for Adani; Talabira II and III, Parsa Kente and Kurmitar mines all witnessing an increase in production volume.

The Parsa Kente mine saw production levels rise by 55 per cent Year-on-Year (YoY) to 3.1MMT while production doubled to 0.4MMT at Gare Palma. Both mines are located in the state of Chhattisgarh. Meanwhile, production levels at Talabira II and III (Odisha) and the newly constructed iron mine in Kurmitar stood at 0.4MMT and 0.7MMT, respectively.

Increased production levels can be attributed to the growing demands for power as the economy gets back on track. Rising power demands are to be expected as lockdown restrictions are being lifted. For players like Adani Talabira, Parsa Kente and other operational mines are not just an efficient way but also a robust way of meeting power requirements of a resurgent India. Currently, thermal power generation is the most cost-efficient way to fulfil energy demands of the growing nation.

According to ICRA, demand for electricity is expected to increase by 6 per cent YoY in FY22. The somewhat blunt impact of the second wave coupled with mass vaccination drives has provided a favourable base for growth this fiscal. June 2021 recorded a spike in power demand with a month-on-month (MoM) increment of 3.9 per cent. Furthermore, ICRA also expects an addition of 17-18GW to India’s power generation capacity in FY22. In the last fiscal, the addition to power generation capacity was 12.8GW.

The second tranche of coal mine auctions is taking place in a parallel development. Out of the 67 mines on offer, 34 bids have already been placed for 19 mines. The total resource base of the mines stands at 36 billion tonnes and with the global window for fossil fuels growing shorter, this is a golden opportunity for stakeholders like Vedanta, Aditya Birla and Adani. Talabira, Parsa Kente, Madanpur South and other coal blocks will continue play a significant role in addition to the 67 mines going under the hammer.

India is at a precarious point where it needs to judiciously balance its power requirements and power generation. Although the shift towards green energy cannot be denied, it would be foolhardy to do away with conventional power generation methods. Coal will remain king for some time in the future until renewable power is versatile enough to meet India’s energy demands.



(Disclaimer--Features may vary depending on the regions; subject to change without notice.)

More News
India will witness explosion of economic growth over next 25 years: Mukesh Ambani

India will witness explosion of economic growth over next 25 years: Mukesh Ambani

02 Dec 2023 | 9:03 PM

Ahmedabad, Dec 2 (UNI) Stating that India will witness an unprecedented explosion of economic growth, Reliance Industries Ltd (RIL) Chairman Mukesh Ambani on Saturday said that the size of
the Indian economy will grow to US$ 40 trillion by 2047 from US$ 3.5 trillion now.

see more..

RSP achieves best April – Nov performances in three key sectors

02 Dec 2023 | 7:51 PM

Bhubaneswar, Dec 2 (UNI) Rourkela Steel Plant (RSP), a unit of the Maharatna Company SAIL, has achieved its best April-November performance in the fiscal year 2023-24.

see more..

Uno Minda to increase land banks for expansion in TN, Pune, North India

02 Dec 2023 | 6:28 PM

Chennai, Dec 2 (UNI) Leading auto component makers and suppliers Unio Minda Limited has chalked out expansion plans, including in Tamil Nadu in South India, and is planning to increase its land bank in this regard in key states.

see more..

New look, changed appearance boost demand for Benzer Paint

02 Dec 2023 | 6:13 PM

Pune, Dec 2 (UNI) A rising star of the paints industry, Benzer Paints has changed its look and has focused on supplying higher quality products in the same price, boosting demand for the company's products.

see more..

Escalating healthcare costs, mental health concerns impacting India Inc: survey

02 Dec 2023 | 5:56 PM

Mumbai, Dec 2 (UNI) A survey conducted by Global Insurance Brokers (GLOBAL) has presented interesting insights into impact of surging healthcare expenses on Corporate India in the post-COVID-19 landscape, revealing that an overwhelming 88 per cent of Corporate India is struggling primarily due to escalating hospital bills.

see more..