India’s Adani Enterprises, the flagship company of the Adani Group, reported a decline in first-quarter profit on Thursday as a drop in coal-fired power demand weighed on its mainstay coal trading division, sending its shares down 4%.
The company’s consolidated net profit stood at 7.34 billion rupees (about $84 million) in the quarter ended June 30, down from 14.55 billion rupees a year ago.
Revenue from operations fell 14% to 219.61 billion rupees, hurt by a 27% decline in its coal trading unit.
The ports-to-power conglomerate’s coal trading business is its biggest segment, contributing to 36% of its overall revenue. It saw continued weakness in the reporting quarter as India registered lower coal-fired electricity demand.
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India’s overall power output also declined amid a milder summer, earlier-than-expected monsoon and slowing economic activity, leading to a decline in coal demand.
The conglomerate has been expanding its new energy business, which includes solar manufacturing and wind turbines. However, the segment registered an 11% dip in revenue, during the quarter.
The clean energy segment’s pre-tax profit dropped about 34% to 9.82 billion rupees, while the coal trading division logged a 45% decline 4.85 billion rupees.
Shares of the company fell as much as 3.8% to 2,436.6 rupees post results. They grew 13% in the April-June period.
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