NEW DELHI: Gautam Adani, Chairman of Adani Group, on Tuesday, said the current volatility in the market is ‘temporary’ even as the Group’s 10 listed entities have lost about $120 billion in market capitalisation since the release of the Hindenburg Research report on January 24.
“AEL’s exceptional resilience and capacity to build highly profitable core sector business indicate how our strategy of harnessing the diverse strengths of Adani portfolio of firms is creating consistent long-term value for all our stakeholders. Our success is due to our strong governance, strict regulatory compliance, sustained performance, and solid cashflow generation,” said Adani while releasing the December 2022 quarterly numbers of flagship firm Adani Enterprises Ltd (AEL).
The billionaire, who has seen a sharp fall in his net fortune, from third-richest earlier to 24th richest now, added, “The current market volatility is temporary; and as a 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.” AEL reported a Rs 820 crore net profit Q3FY23 from a loss of Rs 11.63 crore a year ago. Revenue from operations grew 42% to Rs 26,612 crore. AEL shares fell about 50% in the ongoing rout.
The assurance from Adani comes as the Group is facing one of its biggest crisis in recent times. After Hindenburg accused it of stock price manipulation among other things, a few global banks have stopped accepting its bonds as collateral while Moody’s downgraded outlook of four Group firms. Owing to its humongous size and high debt level, the Group is facing increased scrutiny by the stock exchange, the SEBI and the Supreme Court.
The Group on Tuesday said the portfolio level net debt-to run rate EBITDA ratio has decreased from 7.6x in FY2013 to 3.2x in FY2022. It said there is no material refinancing risk and near-term liquidity requirement as there is no near-term significant debt maturity.
Group faces exchanges, SEBI, Supreme Court scrutiny
After Hindenburg accused the Group of stock price manipulation among other things, a few global banks have stopped accepting its bonds as collateral while Moody’s downgraded outlook of 4 Group firms. Group is facing scrutiny by stock exchanges, the SEBI and the Supreme Court