Adani Enterprises’ profit jumps 138% as group overtakes Hindenburg – Times of India

MUMBAI: Adani Enterprises Ltd’s latest quarterly profit more than doubles as billionaire Gautam Adani’s flagship firm It appears to have recovered from a severe short seller attack earlier this year that wiped off more than $100 billion from the group’s market value.
The Ahmedabad, Gujarat-based company posted a net income of Rs 7.22 billion ($88.2 million) for the quarter ended March 31, compared with Rs 3.04 billion in the same period last year, it said in an exchange filing on Thursday. There weren’t enough brokerages tracking the firm to get an average profit forecast.
The filing said revenue rose 26% to 313.5 billion rupees, while total costs rose 22% to 301.8 billion rupees. The company’s shares rose 5.1% after the earnings announcement, which showed gross debt of 383.2 billion rupees, up from 410 billion rupees last year.
The impressive earnings could fuel Adani Enterprises’ growth and fundraising plans as it oversees a mixed mix of businesses ranging from airports, data centers to roads and digital services. It also suggests that the port-to-power conglomerate’s incubator is focused on consolidating its operations following the blistering report from Hindenburg Research in late January. Adani Group Hindenburg’s allegations of corporate fraud are denied.
Integrated Resource Management, which comprises mostly coal business and contributes the most to the company’s overall revenue, reported a 4.1% growth in sales for the March quarter. Revenue from mining nearly tripled to Rs 26.9 billion, the filing said, while airport business grew 45 per cent compared to the same period last year. The so-called new energy ecosystem saw a 31% increase in revenue.
The company, which declared a dividend of Rs 1.20 per share, said it reviewed the transaction referred to in the Hindenburg report and an independent evaluation by a law firm confirmed it was in compliance.
Tycoon Adani, who built his fortune on the basis of coal trading, is making a sweeping effort to woo investors and appears to be winning back some supporters, but not all. As per the filing, he was re-appointed chairman for five years by the company board.
The founders of Adani Group have, since late January, paid off founders’ $2.15 billion in debt, sold stakes in four of Adani’s firms to GQG Partners, scaled down projects and held investor roadshows.
Adani Ports and Special Economic Zone Ltd last month announced a bond buyback plan to indicate that its liquidity position is comfortable. Bloomberg reported on Thursday that the tycoon’s utility firm, Adani Transmission Ltd, plans to buy back $100 million of bonds issued by one of its units.
Shares of Adani Enterprises had declined 54.6% in the March quarter, but have since recovered somewhat.