Adani Enterprises reported a swing to third-quarter profit on Tuesday from a loss a year earlier, and said it had made no “material financial adjustments” in the wake of the U.S. short seller report that roiled its shares.
The Adani group companies have been under pressure for the past three weeks after the report from Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation, allegations the company has denied.
The group’s seven listed stocks have together lost over $120 billion in market value since Jan. 24.
“The current market volatility is temporary… Adani Enterprises will continue to work with the twin objectives of moderate leverage and looking at strategic opportunities to expand and grow,” chairman Gautam Adani said in a statement.
The profit came on the back of boosts from its key coal trading division and its new energy businesses. Shares surged as much as 10% after the results.
“Shares are reacting to the results and reversing some shorts that might have built up due to speculation,” said Sameer Kalra, equity research analyst and founder of Target Investing.
The company’s consolidated profit stood at 8.20 billion Indian rupees ($99.11 million) for the quarter ended Dec. 31, compared with a net loss of 116.3 million rupees a year earlier.
Its revenue from operations jumped nearly 42% to 266.12 billion rupees.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for its mainstay coal trading business saw a whopping four-fold surge, while that of the Adani New Energy segment more than doubled.
The coal trading division benefited from a rise in volumes as well as higher coal prices, while Adani New Energy segment saw a surge in the volumes and prices of solar modules, the company said.
Global coal prices remained at elevated levels for most of 2022 as European buyers were willing to pay a premium and make up for the absence of cargo from Russia, their main supplier of LNG and coal.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
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