(Reuters) -India’s Adani Enterprises reported a more than seven-fold surge in second-quarter profit on Tuesday, as higher demand in its renewable energy division overshadowed weakness in the key coal trading segment.
Consolidated net profit rose to 17.42 billion rupees ($207.20 million) for the quarter ended Sept. 30, from 2.28 billion rupees a year ago.
The ports-to-power Adani Group’s flagship firm has been expanding its new energy business, which includes solar manufacturing and wind turbine businesses.
The company recently signed a deal to supply clean energy to power Google’s cloud services and operations in India.
The new energy segment’s pre-tax profit increased two-fold to 9.41 billion rupees in the quarter. The segment contributes to 39% of the firm’s profit.
Meanwhile, Adani Enterprises’ mainstay coal trading segment reported 30.5% decline in profit at 7.11 billion rupees as the higher-than-normal rainfall dampened power demand.
India’s coal-fired power output fell in August and September due to slower growth in electricity use and a surge in solar generation, according to data from the federal grid regulator.
Natural gas-fired electricity is expected to outpace coal-fired power output growth in the country in the current fiscal year.
Adani Enterprises’ revenue increased 15.7% to 226.08 billion rupees.
The company’s shares rose as much as 2.3% after the results.
($1 = 84.0750 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Eileen Soreng)
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