Adani flagship’s profit up 115% boosted by new units
The firm posted net income of $173 million during Q1 2024
Adani Enterprises Ltd. posted a 115 per cent jump in quarterly profit, boosted by some of its newer businesses as billionaire Gautam Adani’s flagship rebounds from a scathing short seller attack last year.
The Ahmedabad-based firm posted net income of 14.5 billion rupees ($173 million) for the first fiscal quarter through June 30, compared with 6.74 billion rupees a year ago, according to an exchange filing Thursday. There wasn’t a sufficient number of brokerages tracking the firm to derive an average profit forecast.
Revenue rose 12.5 per cent to 254.7 billion rupees, while total costs climbed 8.6 per cent to 238.3 billion rupees. Adani Enterprises, which oversees a motley mix of businesses from coal trading to airports to data centers and green hydrogen, announced hiving off its consumer goods division.
The robust earnings by the holding company that incubates all the group’s new businesses adds to the tailwinds for the ports-to-power conglomerate that is chalking out ambitious growth plans, including a $100 billion investment in green energy, and feels emboldened enough to tap equity markets again.
Adani’s empire battled a withering short seller attack in early 2023 but has been rapidly regaining lost ground this year. Hindenburg Research’s allegations of wide-ranging corporate fraud in January 2023, which despite denials from the Adani Group had triggered a stock rout and pushed the conglomerate into months of damage control.