Adani Enterprises Q3 net profit falls sharply to Rs 58 crore, shares decline 4%

Adani Enterprises on January 30 reported substantial reduction in net profit at Rs 58 crore for the quarter ended December 31, 2024, impacted by performance at its key coal trading division. The company had reported a profit of Rs 1,888 crore in the same quarter of the previous year.

Adani Enterprises on January 30 reported substantial decline in net profit at Rs 58 crore for the quarter ended December 31, 2024, impacted by performance at its key coal trading division. The company had reported a profit of Rs 1,888 crore in the same quarter of the previous year.

The firm's revenue declined 9 percent to Rs 22,848 crore in Q3FY25 as against Rs 25,050 crore in Q3FY24.

The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reduced 4.8 percent at Rs 3,069.4 crore in the quarter under review against Rs 3,225.7 crore in the year ago period, while the EBITDA margin was reported at 13.4 percent in the December quarter of the current fiscal from 12.9 percent in the year-ago period.

The company's total income declined to Rs 23,500 crore in the December quarter of this fiscal, down from Rs 25,540 crore in the same period last year.

According to analysts cited by Reuters, India's coal demand weakened as power generation growth slowed to 3 percent during the quarter due to lower industrial demand and a broader economic slowdown.

At 2:25 pm, Adani Enterprises shares were trading nearly 4% lower at Rs 2,232.5 apiece.

The coal trading division was hit by lower volumes, while its profit was impacted by a foreign exchange loss at its Australian business.

Adani Enterprises reported a forex loss of Rs 296 crore compared with a gain of Rs 101 crore a year ago.

The company's profit also took a Rs 300-crore hit from its exit from the consumer goods joint venture with Singapore's Wilmar International, Adani Enterprises said, without giving further details.

Revenue from the coal trading segment, which contributes more than a third of overall revenue, fell 44% to Rs 8,980 crore.

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