Adani Group posted record profit in the quarter ended June on the back of its infrastructure and renewable energy businesses, bolstering the finances of Gautam Adani’s business empire as it seeks to shore up investor confidence and resume fundraising months after a damaging attack from a shortseller.
(Bloomberg) — Adani Group posted record profit in the quarter ended June on the back of its infrastructure and renewable energy businesses, bolstering the finances of Gautam Adani’s business empire as it seeks to shore up investor confidence and resume fundraising months after a damaging attack from a shortseller.
The ports-to-power conglomerate said June quarterly earnings before interest, tax, depreciation and amortization jumped 42% from the same period a year ago to 235 billion rupees ($2.8 billion), the highest the group has seen for a single quarter and nearly as much as the profit it earned for the full fiscal year of 2019.
The strong performance posted by its infrastructure and utility businesses across its flagship entity Adani Enterprises Ltd. as well as its green energy and cement arms “gives a high level of stability and multi-decadal earnings predictability and visibility,” the company said in a statement.
The profitability also buoyed the company’s liquidity, with cash balance at the end of June up 4.2% from the end of March, at 421 billion rupees. Improved liquidity position could help improve investor confidence more than six months after shortseller Hindenburg Research accused it of widespread corporate malfeasance, wiping out at one point more than $150 billion in value from its listed companies. Adani has denied any wrongdoing.
Read more: Adani Takes Bond Brokers on Gujarat Trip to Instill Confidence
Since the shortseller attack, the embattled conglomerate has managed to raise billions through share sales from GQG Partners and Qatar Investment Authority. It is also in talks with international banks to refinance loans taken out last year to acquire Ambuja Cements Ltd.
Read more: QIA Unit Buys $474 Million Stake in Adani’s Green Arm
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