Indian thermal power producer Adani Power, opens new tab reported an increase in third-quarter profit on Thursday, as strong industrial demand drove a recovery from a massive slump in profit the previous year.

The company reported a consolidated net profit of 27.38 billion rupees ($329.6 million) in the three months to Dec 31. Adani Power's profit had tanked 96% to 87.7 million rupees in the year-ago quarter on surging fuel costs.

The company has since been reporting higher quarterly profit.

Electricity generation in India rose 8.7% from a year earlier in the December quarter, which analysts attribute to festive activities and strong industrial demand.

Earlier this week, rival JSW Energy, opens new tab reported a 28% jump in quarterly profit.

India's industrial output grew at its fastest pace in 16 months in October, with a 20.4% increase in electricity generation, data from the Ministry of Statistics showed. Industrial output rose 2.4% in November, and data for December is due next month.

The increase in industrial power consumption bolstered Adani Power's revenue, which increased 67% to 129.91 billion rupees.

The results come as shares of Adani Group companies inch to levels seen prior to a scathing report from US short-seller Hindenburg Research in January last year, alleging improper use of tax havens and stock manipulation. The conglomerate has denied all allegations.

While the group lost $150 billion in market value in the initial months following the report, it has since pared losses to about $47 billion.