Adani Group flagship Adani Enterprises shares were trading in the negative in the early hours of February 14, ahead of the release of Q3 results later that day.
According to Bloomberg, the company’s sales might be Rs 29,245 crore, with a net profit of Rs 582.80 crore and an EBITDA of Rs 1952 crore. The business posted a net loss of Rs 98 crore on revenue of Rs 18,757 crore in the same period last year.
The stock was trading at Rs 1,690.40 a share on the NSE at 9:30 a.m., down 1.59 percent.
Looking at the bottom line, the firm earned Rs 255 crore in March 2022, Rs 410 crore in June 2022, and Rs 438 crore in the most recent quarter.
Since the publication of the Hindenburg Research report on January 24, the stock has lost half of its value. “Key listed Adani firms have taken on significant debt, including pledging shares of their overvalued stock for loans, placing the entire group on shaky financial footing,” Hindenburg said.
Following the revelation, Adani Enterprises’ Rs 20,000-crore follow-on issuance was cancelled, despite being fully subscribed.
“The company’s Board felt that going ahead with the issue will not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO,” group Chairman Gautam Adani said.
The funds from the FPO were supposed to be used to support initiatives in the green hydrogen ecosystem, repair current airport facilities, and build new motorways. Internal accruals will now be used to do this.
With only one ‘buy’ call from Ventura Securities, the company has little brokerage coverage.