Adani Enterprises Q3 results: PAT jumps to Rs 1,888 cr, revenue up 6.5% – EQ
In Short : Adani Enterprises has reported its Q3 results, with a Profit After Tax (PAT) surge to Rs 1,888 crore and a 6.5% increase in revenue. This strong financial performance indicates the company’s successful operations across its diverse business sectors during the reported period.
In Detail : 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
India’s 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 Rs1888 crore ($227.5 million) for the quarter ended Dec. 31, compared to 8.2 billion rupees a year earlier.
Earnings before interest, taxes, depreciation and amortization (EBITDA) at Adani’s mainstay coal trading business rose 70% to Rs 1464 crore, while Adani New Energy reported an EBITDA surge of 194% to 673 billion rupees.
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 Rs 28336 crore
Adani Group companies, including Adani Enterprises, have largely recovered after 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.
