Billionaire Gautam Adani’s flagship firm reported a quarterly profit on the back of improved revenues across businesses as it grapples with the fallout from a bruising short seller report.
(Bloomberg) — Billionaire Gautam Adani’s flagship firm reported a quarterly profit on the back of improved revenues across businesses as it grapples with the fallout from a bruising short seller report.
Adani Enterprises Ltd., based in the tycoon’s home city of Ahmedabad in western India, posted net income of 8.2 billion rupees ($99.1 million) for the quarter ended Dec. 31, it said in a filing Tuesday, compared with a loss of 116.3 million rupees in the same period last year. There weren’t enough brokerages tracking the company to derive an average profit forecast.
Revenue at the flagship of Adani’s ports-to-power conglomerate rose 42% to 266.1 billion rupees, the filing said. Total costs climbed 37% to 261.7 billion rupees.
The earnings will be a tailwind for Adani Enterprises, which has a motley mix of businesses spanning coal mining, airports, data centers, digital services and metals. Known for incubating new Adani businesses that are then spun off, the company has weathered a brutal past few weeks that saw its $2.5 billion share sale shelved and its stock plunge after US-based Hindenburg Research accused it of accounting fraud and stock manipulation in a Jan. 24 report.
Despite Adani Group denying the allegations, it triggered a selloff that had eroded $127 billion from the conglomerate’s market value as of Monday. Hindenburg said in its report that it had taken a short position in Adani’s companies through US-traded bonds and non-Indian-traded derivatives.
–With assistance from Atul Prakash and Anirban Nag.
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