BENGALURU: India’s Adani Total Gas reported a 17.2% rise in quarterly profit on Thursday on price hikes and short-term contracts, and the company said it was evaluating an independent review following a U.S. short-seller’s critical report on its businesses.
The company, part of a larger conglomerate led by billionaire Gautam Adani, has been hit by a market rout after U.S. short-seller Hindenburg Research on Jan. 24 alleged it had engaged in stock manipulation and used tax havens.
The group has denied all allegations. Adani Group first said it would evaluate an independent review while reporting results for other group companies on Tuesday.
The company, which distributes piped gas in various Indian cities, said consolidated profit rose to 1.5 billion rupees ($18.18 million) in the quarter-ending Dec. 31, from 1.28 billion rupees a year ago.
Global gas prices have jumped due to supply disruptions and sanctions linked to Russia’s invasion of Ukraine.
Adani Total Gas said it sourced gas through bilateral trades and Indian Gas Exchange, helping the company better manage volatility in prices, it said. Short-term contracts helped in improving gas cost, it said.
Adani Total expects to receive 2.2mn T at Dhamra LNG terminal in FY24
Revenue from operations rose 27.3% to 11.86 billion rupees at the company, a joint venture between France’s energy major Total and Adani Group.
Adani Total stocks have been the worst affected ones, losing over $34 billion in market value since the short seller’s report came in.
TotalEnergies has not yet signed a contract announced last year with Adani, waiting for the result of an audit launched by the Indian conglomerate, the chief executive of the French oil major said on Wednesday
Adani Total Gas said management has assessed that there were no adjustments to its quarterly financial results as a result of the short-seller’s allegations.
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