Why Adani Transmission Shares Are Crashing After Profits Jumped 85% In Q4

Adani Transmission’s share price extended its losing streak on Tuesday after the Adani Group company posted its earnings for the quarter ended March.

What Happened: The company’s consolidated revenue from operations grew by 12.8% to ₹3,357.7 crore as against ₹2,974 crore in the same quarter last year. The company’s net profits soared by over 85% to ₹439.60 crore from the ₹237 crore profit it reported in the year-ago period. However, the company bottomline missed street estimates of around ₹650-₹700 crore by a wide margin.

See Also: When Will Tata Power Share Price Go Up?

The increase in profits was primarily driven by a one-time income of ₹148 crore from a regulatory order in the Transmission business. The company’s total EBITDA came in at ₹1,706 crore, up 23% from the year-ago period. Earnings per share for the quarter stood at ₹3.49.

The results seem to have further dampened the sentiment around the stock. Shares of the company, including all other Adani Group stocks have been facing the heat at the bourses since the Hindenburg report came out.

Price Action: Adani Transmission’s share price was down 4.14% to trade at ₹797.75 in the early hours of trading on Tuesday.

Do not miss: How To Buy Tesla Shares In India

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesMarketsMoversTrading IdeasAdani GroupAdani Transmission