1. Adani Enterprises Q3 profit more than doubles on coal, new energy boost

Adani Enterprises Q3 profit more than doubles on coal, new energy boost

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2 min read • Updated: February 1, 2024, 3:09 PM

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Summary

The company reported a consolidated profit of ₹1,888 crore ($227.5 million) for the quarter ended 31 December 2032, compared to ₹820 crore a year earlier.

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The company attributed strong expense management for higher margins.

Bengaluru, 1 February (Reuters): Adani Enterprises reported a more than two-fold jump in third-quarter profit on Thursday, helped by strong performance in its coal trading and new energy divisions.

The company reported a consolidated profit of ₹1,888 crore ($227.5 million) for the quarter ended 31 December 2032, compared to ₹820 crore a year earlier.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) at Adani's mainstay coal trading business rose 70% to ₹1,464 crore.

Higher margins and volumes in coal trading drove the division's EBITDA higher despite a fall in coal prices, Adani Enterprises said in a statement.

The company attributed strong expense management for higher margins. Its overall expenses rose 1%.Revenue from operations grew 6.5% to ₹28,336 crore.

Adani Group companies, including Adani Enterprises, have largely recovered after a report by U.S. short-seller Hindenburg Research last January wiped out nearly $147 billion from the market capitalisation of the group's main seven stocks.

These shares, however, are still down around $47 billion in value after the report alleged improper use of tax havens and stock manipulation by the group, both of which the conglomerate denied. The report prompted a probe by the market regulator.

The Supreme Court's ruling earlier this year that Adani does not need more scrutiny, along with investments from Abu Dhabi conglomerate International Holding and U.S. boutique investment firm GQG Partners have bolstered investor confidence.

Shares of the company rose 1.2% at ₹3,176 rupees after the results.

(The story was published from Reuters without any major changes)