India's Adani Enterprises Q1 profit jumps on strong new energy business
INDIA’S Adani Enterprises on Thursday (Aug 3) reported a 44 per cent rise in first-quarter profit, as performance at its new energy division outpaced weak growth in the key coal trading division.
The company’s consolidated profit rose to 6.7 billion rupees (S$108.6 million) for the quarter ended Jun 30, from 4.7 billion rupees a year ago.
The company’s mainstay coal business posted a small 5 per cent rise in earnings before interest, taxes, depreciation and amortisation at 10 billion rupees due to a fall in coal prices, while that of the new energy segment jumped to 3.6 billion rupees.
Coal prices have more than halved from record highs hit last year and stabilised from the volatile situation in 2022, when Western sanctions on Russia pushed up global prices.
The coal segment was impacted due to the correction in coal prices and lower volumes, while the new energy business saw strong performance due to a surge in export volumes, the company said in a statement.
Revenue from operations fell 37.7 per cent to 408.4 billion rupees, mainly dragged down by the fall in revenue in its coal segment.
Adani Group companies, including the flagship Adani Enterprises, are slowly recovering from a report by US short-seller Hindenburg Research in January, which wiped out nearly US$147 billion from the listed entities’ market cap.
Shares of its group companies have rebounded but are still down around US$100 billion in value after the Hindenburg report alleged improper use of tax havens and concerns over its debt levels, which the conglomerate denied. REUTERS
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