Adani Enterprises Q2 profit surges seven-fold on renewable energy demand

Billionaire Gautam Adani-backed 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 key coal trading segment.

Consolidated net profit rose to Rs 1,742 crore for the quarter ended September 30, from Rs 228 crore a year ago.

The ports-to-power Adani Group 's flagship firm has been expanding its new energy business, which 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.

The new energy segment's pre-tax profit increased two-fold to Rs 941 crore in the quarter. The segment contributes to 39 per cent of the firm's profit.

Meanwhile, Adani Enterprises' mainstay coal trading segment reported 30.5 per cent decline in profit at Rs 711 crore as the higher-than-normal rainfall dampened power demand.

India’s coal-fired power output fell in August and September due to slower growth in electricity use and a surge in solar generation, according to data from the federal grid regulator.

Natural gas-fired electricity is expected to outpace coal-fired power output growth in the country in the current fiscal year.

Adani Enterprises' revenue increased 15.7 per cent to Rs 22,608 crore.

The company's shares rose as much as 2.3 per cent after the results.