Adani Group”s flagship company, Adani Enterprises Limited (AEL) has come up with a very poor second quarter results with net profit down by 51 % to Rs 227.8 crore and revenue from operations down by 41 percent to Rs. 22,517 crore year on year basis. Decreasing Coal prices took a toll on company”s profits.

However, according to the experts, the incubation pipeline, being strengthened in the first half of the current fiscal, i.e. FY 2024, contributed significantly to the topline.

Gautam Adani, Chairman of the Adani Group, acknowledging this, said the company”s profit and revenue was dependent on infra incubating businesses while the fall in coal price affected crucial coal trading division with revenue and EBITDA dropping by 59.3% and 9.2% respectively.

The company stock is currently trading flat with Rs. 2.215.30 despite significant up move in the benchmark indices. The stock has shed around 42 percent so far this year exacerbating the damage caused by the US-based short seller Hindenburg which alleged Adani group perpetuating financial fraud and stock manipulation. The Group has denied the allegations.

However, with the help of foreign institutional investors such as GQG partners, which invested heavily in the company, the stock has showed some resilience in the past 6 months with 20% gains. In the last five years the Adani Entreprises”s stock has shown incredible growth, providing 1,000 percent returns to investors.