Source: Adani Group’s Facebook page.

by Glenda Kwek

MUMBAI, INDIA — Indian billionaire Gautam Adani’s flagship firm returned to profit in the December quarter, earnings reports showed Tuesday, as the tycoon insisted his businesses would bounce back from damaging corporate fraud allegations.

Investors wiped out around $120 billion in value from Adani Group after US short-seller investment group Hindenburg Research last month accused it of using offshore tax havens to manipulate stock prices.

Indian regulators confirmed Monday that they were probing allegations raised in the report for potential instances of securities fraud and insider trading.

The conglomerate has been working to restore market confidence by pledging early repayment of $1.1 billion in loans, and shares in its listed entities have since recovered from their rout.

Flagship Adani Enterprises posted a net profit of 8.2 billion rupees ($99 million) for the three months to December, up from a loss of 116 million rupees from a year before, in a filing Tuesday.

“Our success is due to our strong governance, strict regulatory compliance, sustained performance, and solid cash flow generation,” Adani, 60, said in the earnings report.

“The current market volatility is temporary,” he added, saying the company was committed to keeping leverage “moderate” and looking for growth opportunities.

Revenue jumped 42 per cent on-year to 269 billion rupees ($3.3 billion).

Adani Enterprises shares closed 1.9 per cent higher in Mumbai.

The company’s founder was until last month Asia’s richest man but the stock market rout delivered a dramatic hit to his personal fortune, tumbling him down from third to 23rd on Forbes’ real-time billionaires’ list.

Hindenburg’s report accused Adani of a “brazen stock manipulation and accounting fraud scheme” in “the largest con in corporate history”.

Adani artificially boosted the share prices of its units by funnelling money into the stocks through offshore tax havens, the investment group said.

The conglomerate has rejected the claims as a “maliciously mischievous” reputational attack.

India’s capital markets regulator said in a Monday filing to the Supreme Court that it was probing “the allegations made in the Hindenburg report” and market activity before and after its publication.

The Securities and Exchange Board of India said it was in the “early stages” of investigation and did not go into details.

Political opponents accuse Prime Minister Narendra Modi of abetting Adani’s rapid rise, allowing the billionaire to unfairly win contracts and avoid proper regulatory oversight.

Opposition lawmakers have demanded a probe into Modi’s links with the tycoon, and public financial institutions’ potential exposure to his firms.


Notify of
Oldest Most Voted
Inline Feedbacks
View all comments
You May Also Like

UN weather agency chooses next chief to lead climate change fight

The World Meteorological Organization (WMO) is set to elect a new leader this week to bolster global efforts in tracking climate change. Four candidates, including two women, are vying for the position. The WMO’s role in climate change has gained prominence, and the new secretary-general is expected to become a prominent advocate on this urgent global issue. The election will conclude the WMO’s general assembly, which focuses on ramping up climate response and supporting countries in climate adaptation. The new leader will assume office on 1 January 2024.

World Bank, IMF spring meetings to get underway in complex economic environment

The IMF and World Bank’s spring meetings will focus on an ambitious reform and fundraising agenda, but concerns over high inflation, rising geopolitical tension, and financial stability are likely to overshadow discussions. The IMF predicts global growth to fall below 3% this year, with close to 90% of the world’s advanced economies experiencing slowing growth. The meetings also provide an opportunity to reform the World Bank to better tackle long-term issues like climate change, with the US pushing for changes to the bank’s mission statement and financial capacity.

International anger as air strikes kill dozens in Myanmar

Dozens killed in Myanmar air strikes, including schoolchildren, as UN and Western nations condemn attacks and demand accountability. Myanmar has been in chaos and its economy in tatters since a military coup in February 2021. The death toll from the early Tuesday morning strike on the remote Kanbalu township is unclear, but at least 50 fatalities and dozens of injuries have been reported by local media. The military has faced international condemnation for razing villages, mass killings and air strikes on civilians.

Survivor rescued as Thai navy continues search for 29 sailors

by Montira Rungjirajittranon PRACHUAP KHIRI KHAN, THAILAND —  One sailor was found…