New Delhi: Gautam Adani, chairman of the Adani Group, has dismissed as “temporary” volatility the rout in stock prices that has halved the company’s market value in the aftermath of a report released by US short-seller Hindenburg Research.
According to Financial Times, the business tycoon made these comments as Adani Enterprises on Tuesday, February 14 released its previous quarter’s earnings, posting a net profit of Rs 820 crore.
“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,” Moneycontrol reported him as saying.
Adani Enterprises reported a net profit of Rs 820 crore for the October-December 2022 quarter, as against a loss of Rs 11.63 crore a year ago, the report said.
The company’s revenue from operations zoomed 42% to Rs 26,612.2 crore from Rs 18,757.9 crore last year.
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“Over the past three decades, as well as quarter after quarter and year after year, Adani Enterprises has not only validated its standing as India’s most successful infrastructure incubator but has also demonstrated a track record of building a core infrastructure business,” he said.
On January 24, Hindenburg Research published a report alleging stock manipulation and fraud. The Adani Group has denied the allegations. However, the stock rout forced Adani to shelve a Rs 20,000 crore share sale that was intended to broaden its investor base.
The Securities and Exchange Board of India has told the Supreme Court that it was investigating the allegations made in the Hindenburg report.
Adani Enterprises was up by 1.91% to close at 1,750.30 a piece on the BSE on Tuesday. But Financial Times said that despite the recovery, the stock is still down about 45% since the short seller released its report on the Adani Group.
On the same day, five of the nine Adani Group stocks ended in the red. Adani Ports and Special Economic Zone were up by 2.15%. Adani Power was down by 5%, Adani Transmission 5%, Adani Green Energy 4.99%, Adani Total Gas 5%, and Adani Wilmar 5%.