India`s Adani Enterprises posts Q2 profit surge on renewable energy demand
India's Adani Enterprises reported a more than seven-fold surge in second-quarter profit on Tuesday, as higher demand in its renewable energy division overshadowed weakness in the mainstay coal trading segment.
The ports-to-power Adani Group's flagship firm posted a consolidated net profit of 17.42 billion rupees ($207.20 million) for the quarter ended Sept. 30, up from 2.28 billion rupees a year ago.
Adani Enterprises' shares reversed course to end 1.6% higher after the results.
India, the world's fastest-growing major economy and third-largest greenhouse gas emitter, saw a slump in coal-fired power output in the quarter, while solar power generation surged.
The decline reflects a shift in fuel use patterns as India scrambles to achieve its 2030 clean energy target.
Adani Enterprises' new energy segment, which contributes to 39% of the overall profit, logged a two-fold rise in pre-tax profit to 9.41 billion rupees in the quarter.
The new energy segment includes solar manufacturing and wind turbine businesses.
The company recently signed a deal to supply clean energy to power Google's cloud services and operations in India, while Adani Group is also making increased attempts to ramp-up cleaner energy projects locally and overseas.
Meanwhile, the company's mainstay coal trading segment reported a 30.5% decline in profit at 7.11 billion rupees as above-average rainfall dampened power demand.
The coal trading segment is the only among its five segments to report a fall in profit.
Adani Enterprises' revenue increased 15.7% to 226.08 billion rupees.
($1 = 84.0750 Indian rupees)
