Shares of Adani Enterprises staged a strong rebound in Tuesday’s session after the Adani group flagship reported December quarter results. In a press release, the Adani Group Chairman, Gautam Adani, said the current market volatility is temporary and that as a classical incubator with a vision of long-term value creation Adani Enterprises will continue to work with the twin objectives of moderate leverage and looking at strategic opportunities to expand and grow.
Without naming Hindenburg Research, Adani Enterprises in its results’ note said a short seller has issued a report, alleging certain issues against some of the Adani Group entities, which have been refuted by the parent company in its detailed response on January 29.
“Management of the Group has assessed that no material financial adjustment arises to the consolidated financial results for the quarter and nine months ended 31st December, 2022 with respect to these allegations,” Adani Enterprises said.
Following the quarterly results, the stock jumped 17.23 per cent to hit a high of Rs 1,889 from a low of Rs 1,611.30 earlier today. Adani Enterprises said its net profit stood at Rs 820.06 crore for the December quarter. The company had reported a loss of Rs 12 crore in the same quarter last year.
Adani Enterprises reported a 42 per cent YoY jump in the income from operations at Rs 26,951 crore in the December quarter compared with Rs 18,963 crore in the year-ago quarter. Ebitda for the quarter grew 101 per cent YoY to Rs 1,968 crore compared with Rs 977 crore in the same quarter last year.
Adani said his company’s success was due to “strong governance, strict regulatory compliance, sustained performance, and solid cashflow generation.”
His comments came amid a Reuters report quoting sources said the group has appointed accountancy firm Grant Thornton for independent audits of some of its companies in a bid to discredit claims by short-seller Hindenburg Research that have battered its stocks and bonds.
“Our fundamental strength lies in mega-scale infrastructure project execution capabilities, organisational development and exceptional O&M management skills comparable to the best in the world. AEL’s exceptional resilience and capacity to build highly profitable core sector business indicate how our strategy of harnessing the diverse strengths of the Adani portfolio of companies is creating consistent long-term value for all our stakeholders,” he said.
Adani said Adani Enterprises has, over the past three decades, not only validated its standing as India’s most successful infrastructure incubator, but has also demonstrated a track record of building core infrastructure business.
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