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.

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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.