Adani Enterprises tanks 9% post its decision to defer investment in Australian project

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Adani Enterprises tanked over 9 percent intraday on Tuesday as investors turned wary of the company’s decision to defer investment decision in its Australian project.

The company, on Monday, deferred a final investment decision on its long-delayed Australian Carmichael coal project as Queensland state government is yet to sign off a royalty deal for the mine.

The company had been planning to make a final investment decision (FID) on the 25 million tonnes a year coal mine and rail project by the end of May.

"Adani is advised that the Queensland cabinet did not consider any submission or make a decision on royalties for the Adani project today," said the firm's spokesman in Australia, Ron Watson. "In light of that, Adani has today deferred a decision by the board on FID until the government makes a decision."

The company was in the news recently when it reported a 62 percent rise in consolidated net profit to Rs 340 crore for the quarter ended December 31, 2016 on improved income. The firm had clocked a net profit after taxes, minority interest and share of profit/loss of joint ventures and associations at Rs 210 crore in the corresponding quarter of the previous fiscal.

The stock lost over 25 percent in the past one month, while its three-day loss stood at 7 percent. At 09:34 hrs, Adani Enterprises was quoting at Rs 112.40, down Rs 8.70, or 7.18 percent on the BSE. It touched an intraday high of Rs 118.55 and an intraday low of Rs 109.65.

(With inputs from Reuters)