India`s Adani group flagship firm posts Q3 profit slump as coal trading segment weighs
India's Adani Enterprises, the flagship company of the Adani group, reported a slump in third-quarter profit on Thursday, impacted by performance at its key coal trading division.
The company's consolidated net profit declined to 578.3 million rupees ($6.68 million) in the October-to-December quarter, from 18.88 billion rupees a year ago.
Its shares fell 4.6% after the results and were among the top losers in the benchmark Nifty 50 index, which was down 0.1%.
The company's overall revenue fell about 9% to 228.48 billion rupees. Revenue from the coal trading segment, which contributes more than a third of overall revenue, fell 44% to 89.80 billion rupees.
India's coal demand softened, in line with power generation growth that dropped to 3% for the quarter on the back of a fall in industrial demand and amid a broader slowdown in the economy, according to analysts.
In the middle of last quarter, U.S. 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.
($1 = 86.5640 Indian rupees)
