Adani Enterprises reported a near 50% drop in second-quarter profit on Thursday, hurt by weakness in its key coal trading division due to a fall in prices.
The Adani group’s flagship company posted a consolidated profit of 2.28 billion rupees ($27.40 million) for the quarter ended Sept 30, down from 4.61 billion rupees a year ago.
Coal prices have fallen from the record highs hit last year and have stabilised from the volatile situation in 2022 when Western sanctions on Russia pushed up global prices.
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The company’s mainstay coal trading business posted a 59.3% fall in revenue, while earnings before interest, taxes, depreciation and amortization (EBITDA) dropped 9.2%, hurt by the drop in both coal prices and volumes, the company said.
Meanwhile, revenue in its new energy segment nearly tripled to 18.82 billion rupees, offsetting some of the impact of performance at the coal trading division.
Overall revenue from operations dropped 41% to 225.17 billion rupees.
The company’s shares were down 0.3% after the results. They had earlier risen as much as 3.6% in the session.
The stock has fallen about 43% so far this year, while benchmark Nifty 50 index is up about 5.7%.