Business & Economy

Adani Enterprises profit rises $99 million in 3rd quarter amid scandal

New Delhi, Feb 14 (EFE).- Adani Enterprises, the flagship firm of the business group headed by Indian billionaire Gautam Adani, posted a net profit of $99 million in the third quarter of India’s financial year, evan as it has lost billions in stock value over the past month following allegations of share fraud.

The profit is in contrast to the $1.5 million loss registered by the company in the same period (October-December) in the previous year.

Adani Enterprises’ operating profit rose to $2.98 billion, a 42 percent rise year-on-year, thanks to greater volume and better prices in the segments of integrated resource management and new energy ecosystems, the company said in a statement.

It also reported a sizable jump in the Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda), which nearly doubled to reach $237.7 billion.

Discussing the results, group founder and president Gautam Adani said that current market volatility surrounding the group was “temporary,” and the flagship firm would “continue to work with the twin objectives of moderate leverage and looking at strategic opportunities to expand and grow.”

The Adani Group has been under unprecedented pressure over the past month after a report by New York-based short seller Hindenburg Research alleged massive corporate fraud and stock manipulation by the conglomerate spread over decades.

The report came just ahead of a massive follow-on public offer (FPO) of Adani Enterprises that was initially expected to raise $.25 billion in one of the largest-ever listings in Indian markets.

However, the FPO had to be cancelled despite having received 100 percent subscriptions, with the group citing market volatility as the group’s stock plummeted after the expose.

The flagship firm has still not recovered from the stock crash, with its share price dropping 48.4 percent since the report’s release: from over $40 to $21.14 as of Tuesday, as per the Bombay Stock Exchange.

Adani – who dropped from the 3rd position in the Forbes worldwide rich list to 23rd, has incurred losses worth over $60 billion due to the scandal. His current net worth is estimated to be around $53.3 billion as of Tuesday. EFE


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