Adani Power net profit surge multi-fold to ₹2,738 crore, revenue rises 67% on stronger demand

BENGALURU, Jan 25 (Reuters) - Indian thermal power producer Adani Power reported an increase in third-quarter profit on Thursday, as strong industrial demand drove a recovery from a massive slump in profit the previous year.

The company reported a consolidated net profit of ₹2,738 crore ($329.6 million) in the three months to 31 December. Adani Power's profit had tanked 96% to ₹8.77 crore in the year-ago quarter on surging fuel costs.

The company has since been reporting higher quarterly profit. Electricity generation in India rose 8.7% from a year earlier in the December quarter, which analysts attribute to festive activities and strong industrial demand.

Earlier this week, rival JSW Energy reported a 28% YoY jump in quarterly profit.

India's industrial output grew at its fastest pace in 16 months in October, with a 20.4% increase in electricity generation, data from the Ministry of Statistics showed. Industrial output rose 2.4% in November, and data for December is due next month.

The increase in industrial power consumption bolstered Adani Power's revenue, which increased 67% to ₹12,991 crore.

The results come as shares of Adani Group companies inch to levels seen prior to a scathing report from U.S. short-seller Hindenburg Research in January last year, alleging improper use of tax havens and stock manipulation. The conglomerate has denied all allegations.

While the group lost $150 billion in market value in the initial months following the report, it has since pared losses to about $47 billion.

Adani Power is one of the two main Adani Group companies that have exceeded their pre-Hindenburg levels, the other being Adani Ports.