Adani Enterprises Swings to Profit, Pledges Lower Leverage

Gautam Adani’s flagship firm Adani Enterprises Ltd. posted net income of 8.2 billion rupees for the quarter ended Dec. 31, compared with a loss of 116.3 million rupees in the same period last year. Revenue surged 42% across businesses to 266.1 billion rupees, with the so-called integrated resource management seeing 38% jump to 175.9 billion rupees. Revenue from mining, airports and new energy also more than doubled in the December quarter. The Adani Group is said to have halved its revenue growth target and delayed capital spending plans. The company has weathered a brutal past few weeks that saw its $2.5 billion share sale shelved and its stock plunge after US-based Hindenburg Research accused it of accounting fraud and stock manipulation. Chairman Adani said in the earnings statement that “the current market volatility is temporary” and the company will look at strategic opportunities to expand and grow. Adani Enterprises also pledged to lower leverage as the Indian billionaire tries to win back investor confidence after a bruising report from a short seller wiped out more than $120 billion of his empire’s market value.