Asian Currency

India’s Adani flagship posts worst quarterly profit fall in 3 years on weak coal demand, forex loss


MUMBAI – India’s Adani Enterprises, the flagship company of the Adani Group, on Jan 30 reported its biggest quarterly profit slump in three years in the third quarter, as a fall in power demand weighed on its key coal trading division.

The company’s profit also took a 3 billion rupees (S$46.9 million) hit from its exit from the consumer goods joint venture with Singapore’s Wilmar International, Adani Enterprises said, without giving further details.

The company’s consolidated net profit declined to 578.3 million rupees in the October-December quarter, from 18.88 billion rupees a year ago.

This was Adani Enterprises’ worst quarterly profit fall since the quarter ending Dec 31, 2021, when it swung to a loss.

Its shares fell as much as 5 per cent to their lowest since Nov 27 after the results and were among the top losers in the benchmark Nifty 50 index, which was up 0.2 per cent.

In November 2024, US authorities accused the group’s billionaire founder Gautam Adani and other executives of being part of a scheme to pay bribes to secure Indian power supply contracts. The group has denied the allegations.

Adani Enterprises’ overall revenue fell about 9 per cent to 228.48 billion rupees.

The coal trading division was hit by lower volumes, while its profit was impacted by a foreign exchange loss at its Australian business.

Adani Enterprises reported a forex loss of 2.96 billion rupees, compared with a gain of 1.01 billion rupees a year ago.

Revenue from the coal trading segment, which contributes more than a third of overall revenue, fell 44 per cent to 89.80 billion rupees.

India’s coal demand softened in the quarter, with power generation growing only 3 per cent amid weak industrial demand and a broader slowdown in the economy, according to analysts. REUTERS

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