BENGALURU - Adani Power on Wednesday reported a 96% fall in third-quarter profit on rising fuel costs, and joined other group companies in saying it saw no material adverse impact from a possible 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 statement was reiterated on Wednesday with Adani Power's quarterly earnings disclosure.
Group company Adani Wilmar too said Hindenburg Research's report had no bearing on its operations.
Adani Power - the power generating arm of the Adani Group- posted consolidated net profit of 87.7 million rupees ($1.06 million) in the three months ended Dec 31, down from 2.18 billion rupees a year ago.
"Operating performance during third quarter was constrained mainly due to high import coal prices and insufficient domestic fuel availability due to high power demand," the company said in a statement.
Fuel costs, which account for about 70% of the company's total expenses, nearly doubled to 55.33 billion rupees.
Revenue from operations rose 44.8% to 77.64 billion rupees.
Shares of Adani Power have fallen nearly 34% since Jan. 24, taking the company's losses to $4.3 billion since the Hindenburg report came out, while the group's losses have ballooned to over $102 billion. ($1 = 82.5380 Indian rupees)
(Reporting by Nishit Navin and Nallur Sethuraman in Bengaluru)