Adani Enterprises Swings to Third-Quarter Earnings on Strong Coal Trading

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The gain was boosted by Adani Enterprises’ primary coal trading division and its new energy business. Shares rose 9% after the earnings announcement.

Adani GroupAdani Enterprises’ consolidated profit was Rs.8.2 billion ($99.11 million) for the quarter ended December 31, compared with a net loss of Rs.116.3 million for the same period last year. (File image/Nirmal Harindran)

Adani Enterprises on Tuesday reported a swing from last year’s losses to third-quarter gains and said it was not making a “significant financial adjustment” after US short-selling reports roiled stocks.

Adani Group companies have come under pressure over the past three weeks after reports accused it of improper use of offshore tax havens and stock manipulation, but the company has denied the allegations.

The group’s seven publicly traded stocks have collectively lost more than $120 billion in market capitalization since January 24.

The earnings were underpinned by major coal trading divisions and new energy businesses. Shares rose 9% after the earnings announcement.

The company posted a consolidated profit of INR 8.2 billion ($99.11 million) for the quarter ended December 31, compared to a net loss of INR 116.3 million in the same period last year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the flagship coal trading business surged by a whopping fourfold, while earnings for the Adani New Energy segment more than doubled.

The coal trading sector has benefited from increased volumes and higher coal prices, while Adani New Energy sector saw a surge in solar module volumes and prices, the company said.

Global coal prices have remained elevated for most of 2022. This is because European buyers are willing to pay a premium to compensate for the lack of cargo from Russia, a major supplier of LNG and coal.

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