Adani Green’s December Quarter Profit More Than Doubles On Strong Demand

India’s Adani Green Energy, the renewable energy arm of the embattled Adani Group, reported a more than two-fold jump in third-quarter profit on Tuesday, led by strong demand for power supply.

Adani Green is one of several Adani Group companies caught in the eye of a storm since Jan. 24 when U.S.-based short-seller Hindenburg Research raised concerns on the conglomerate’s debt levels and use of tax havens, allegations the group has denied.

The company’s consolidated profit rose to 1.03 billion rupees ($12.45 million) in the October-December quarter, from 490 million rupees a year ago.

Revenue from power supply increased nearly 30% to 12.6 billion rupees in the quarter, the green energy arm of the conglomerate said in an exchange filing.

Its total income rose to 22.58 billion rupees from 14.71 billion rupees a year earlier, the company added.

Rising demand for electric vehicles and appliances, mainly from urban households, benefited companies like Adani Green tapping into India’s efforts to reduce carbon emissions and curb air pollution.

Declining costs for raw materials and rising heating demand in December also helped India’s power sector. A considerable increase in demand came from industrialised states, analysts noted.

Shares of Adani Green have fallen about 56% in two weeks, taking the company’s losses to nearly $19.7 billion since the report, while the group’s losses have ballooned to nearly $110 billion.

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