According to comments made by the company’s Chief Financial Officer, Jugeshinder Singh, the beleaguered Adani Group intends to reevaluate its policy towards the capital market until the market as a whole has reached a state of total stability. In the annual report of Adani Enterprises for the fiscal year 2022-2023, Singh noted that the company’s financial sheet is ‘healthy’ and that it has industry-leading business growth skills, robust governance, secure assets, and solid cash flows.
“Once the market completely stabilises, the company will review its capital market strategy and remains confident in its capacity to sustain superior shareholder returns,” Singh said.
In the fiscal year 2022-2023, the total consolidated revenue of the Adani Group of enterprises was 1,38,175 crore, which is a 96 percent increase over the previous fiscal year’s total revenue of 70,433 crore. According to the annual report, the consolidated profits of the firm before interest, taxes, depreciation, and amortisation (EBIDTA) climbed by 112 percent to reach Rs 10,025 crore in the fiscal year 2022-2023. During the fiscal year 2022-2023, the consolidated profit after tax (PAT) that was attributable to owners rose by 218 percent to reach Rs 2,473 crore.
According to Singh’s comments in the annual report, the business had a creditable performance, which was characterised by profitable expansion as a result of good controls, compliance, and governance.
A US short-seller named Hindenburg Research published a damaging study at the beginning of January claiming accounting fraud and stock price manipulation at Adani Group. This revelation triggered a stock market meltdown that wiped around USD 145 billion off the conglomerate’s market value at its lowest point. Hindenburg Research is based in the United States.
The Adani Group, on the other hand, has refuted all of Hindenburg’s charges.
The Chief Financial Officer of the organisation also discussed the reasons why the overall risk profile of the organisation is still considered moderate. “Your company has an elaborate Risk Management Framework with corresponding alerts and triggers against external realities, promoting a timely response. In view of this, even as your company is large, its overall risk profile (aggregated across businesses) continues to be moderate,” Singh said.
“In a portfolio of businesses influenced by such diverse market pulls and pressures, the overriding validation of our strategic direction lies in our capital management. At AEL, capital management is our capacity to feed cash flows from a business for its own sustainable growth while addressing the short-term needs of other businesses,” he said.
