BENGALURU (Reuters) -India’s Adani Enterprises’ first-quarter profit more than doubled on Thursday as growth in its new energy division outweighed weakness in its key coal trading segment.
Consolidated net profit rose to 14.55 billion rupees (around $174 million) for the quarter ended June 30, from 6.74 billion rupees a year ago, the company, which is the flagship firm of the Adani Group, said in an exchange filing.
The new energy segment, which comprises of solar manufacturing and wind turbine businesses, posted a 3.6% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) to 16.42 billion rupees.
The segment contributes 38% of the company’s total EBITDA, which jumped 48% to 43 billion rupees.
The conglomerate has been expanding its new energy business, through more investments in renewable energy. The division comprises 15% of net revenue and its quarterly performance was supported by a jump in volumes and prices of solar modules.
Overall, revenue from operations rose 12.4% to 254.72 billion rupees.
Meanwhile, the company’s mainstay coal trading business revenue fell 28% to 107.94 billion rupees on lower coal prices.
In May, Adani Enterprises bounced back to levels last seen in January 2023, when a report by U.S. short-seller Hindenburg Research triggered a sell-off in billionaire Gautam Adani’s ports-to-power conglomerate. The Adani Group has denied the allegations.
Additionally, Adani Enterprises approved the demerger of its food business to Adani Wilmar.
($1 = 83.7140 Indian rupees)
(Reporting by Sethuraman N R and Manvi Pant in Bengaluru; Editing by Sonia Cheema)
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