Adani Enterprises Ltd (AEL) on Tuesday said it will focus on moderating leverage and explore strategic opportunities as the consolidated profit of the flagship jumped to Rs 820 crore in the third quarter ended December 31 from a loss of Rs 11.63 crore a year ago.
The strong numbers resulted in the AEL share rallying almost 9 per cent from the day’s low to close at Rs 1,750.30 in the BSE — a gain of 1.91 per cent from the previous close. AEL — which has seen crores of its market wealth wiped out by the Hindenburg allegations — said it made no “material financial adjustments” owing to the charges by the US short seller.
It said the strong performance was on account of the airports business and the strategy of integrated resource management in inputs such as coal. Chairman Gautam Adani, in the limelight following the Hindenburg report, sought to reassure shareholders: “The current market volatility is temporary; and as a classical incubator with a vision of long-term value creation, AEL will continue to work with the twin objectives of moderate leverage and looking at strategic opportunities to expand and grow.”
Revenues in the third quarter rose to Rs 26,612.23 crore from Rs 18,757.87 crore in the same period of the previous year. The profit before tax on a consolidated basis stood at Rs 779.65 crore compared with Rs 84.37 crore in the year-ago period. Profit after tax was at Rs 739.88 crore against Rs 1.80 crore last year, considering the operations of jointly controlled entities and associates.
However, after a Rs 64- crore other comprehensive income that included reclassified items to profit and loss, the net profit attributable to shareholders was Rs 820.06 crore against a loss of Rs 11.63 crore last year. The non-controlling interest — which represents the portion of profit or loss and net assets not held by the group — stood at a negative Rs 80.18 crore against Rs 13.43 crore in the corresponding period of the previous year.
Meanwhile besides AEL, the Adani Ports and ACC stocks rose 2.15 per cent and 0.41 per cent, respectively, on Tuesday. However, other counters ended with losses: Adani Power, Adani Transmission, Adani Green Gas, Adani Total Gas, NDTV and Adani Wilmar got stuck in the lower circuit of 5 per cent, while Ambuja Cements fell 1.68 per cent to Rs 336.65 in the BSE.
Grant Thornton
The Adani group has reportedly appointed accountancy firm Grant Thorton to conduct independent audits of some of its group companies following the damaging report by Hindenburg Research.
A Reuters report said that the conglomerate wants to discredit claims by the short-seller which in its report had also questioned the quality of the audit done for couple of firms of the group.
The Reuters report added that Grant Thornton has been hired to conduct independent audits of some group firms. It is also learnt that Grant Thornton would look at whether related-party transactions at the Adani group met with the prescribed corporate governance standards.
Abu Dhabi help
The Adani group is reportedly in discussions with Abu Dhabi’s International Holding Corp (IHC) for a fund infusion of up to $1.5 billion as it scrambles to boost it balance sheet amid concerns about high debt and a cut in capex plans.
IHC had invested $400 million (Rs 3,260 crore) in the Rs 20,000 crore follow-on-public offering of Adani Enterprises last month. AEL subsequently withdrew the FPO and returned back the funds.
