Adani Enterprises on Tuesday reported more than a seven times hike in its second-quarter profit due to the higher demand in its renewable energy sector even after the mainstream coal and mining sector facing a slowdown. Its revenue soared to 15.7 percent reaching Rs 226.08 billion.
The company’s mainstay coal trading segment, on the other hand, reported a 30.5 percent decline in profit at 7.11 billion rupees as above-average rainfall dampened power demand.
The Adani Group, a leader in the ports-to-power sector, reported a substantial rise in its consolidated net profit for the quarter ending September 30, soaring to Rs 17.42 billion from Rs 2.28 billion in the same period last year.
Adani Enterprises’ shares closed 1.6 percent higher following the announcement.
India, being the world’s fastest-growing major economy and third-largest emitter of greenhouse gasses, experienced a decline in coal-fired power production during the quarter, while solar power generation saw significant growth.
This decline reflects a deviation in the country’s fuel usage pattern as India strives hard to achieve its 2030 clean energy target.
Adani Enterprises’ new energy segment, including solar manufacturing and wind turbine businesses, accounted for 39 percent of the company’s total profit with its pre-tax profit doubled to Rs 9.41 billion in the quarter.
Recently, the company also signed a deal regarding the supply of clean energy to power Google’s cloud services and operations in India.
At the same time, the energy group is also attempting to work up cleaner energy projects locally and overseas.
Among its 5 businesses, coal trading is the only segment a fall in profit.