-Adani Enterprises has strong corporate governance, secure assets and cash flows: Executive
-Adani Group companies said in a stock exchange filing that it faces no material refinancing risk and there is no near-term liquidity requirement
Mumbai, NFAPost: Adani Enterprises, the flagship of Adani Group, said new businesses of renewables, data centres, airports and roads account for more than 33 per cent of earnings and it will complete all infrastructure projects on time.
“We are laser focused on continuing our business momentum, in this market volatility. We are confident in our internal controls, compliance and corporate governance. We will focus on AEL’s financials, operating performance, and incubation pipeline,” said Jugeshinder Singh, chief financial officer of Adani Enterprises (AEL).
The group, owned by Gautam Adani, has been trying to win back investor confidence after a report from US short-seller Hindenburg Research last month wiped out more than $120 billion of his empire’s market value. The company has denied all allegations by Hindenburg as “a lie.”
AEL is making progress in incubation of new projects by Adani New Industries (ANIL) in green hydrogen, Adani Connex in data centres, and Adani Airports Holding and Adani Road Transport, said Singh in a statement.
Singh said the group’s decision to not go ahead with a follow-on public offer (FPO) will not affect its operations and plans. “We have an impeccable track record of responsibly managing our balance sheet. We are undisputed leaders in executing complex infrastructure projects.
“Whilst in the initial stages of a new project, our leverage tends to increase the nature of our infrastructure assets generating strong cashflow results in rapid deleveraging,” he said.
AEL has strong corporate governance, secure assets and cash flows. “Once the current market stabilises, we will review our capital market strategy, but rest assured we are confident in our continued ability to deliver business that provide superior returns to shareholders.”
In ANIL, the company has three business streams including manufacturing ingots, wafers, cells, modules, wind turbines, electrolyser and associate ancillary equipment, green hydrogen generation and downstream products.
In the third quarter of FY23, Singh said the module line was operational for a 2 gigawatt plant and commissioning for the cell line is expected by March.
In Adani Airports Holding (AAHL) portfolio, the passenger movement increased by 40 per cent to 20.3 million. In the road portfolio, the company received provisional commissioning for three road projects.
Adani Group hires banks to hold meetings with fixed-income investor
Banks are setting up meetings with fixed-income investors over the next week on behalf of Adani Group, Adani Green Energy Ltd and Adani Transmission.
The calls are scheduled for Feb. 16 and Feb. 21, according to a person familiar with the matter. Barclays Plc, BNP Paribas SA, DBS Bank Ltd, Deutsche Bank AG, Emirates NBD Capital, ING Groep N.V., MUFG, Mizuho, SMBC Nikko and Standard Chartered Bank are organizing the calls. It’s unclear what will be discussed during the meetings.
Attention has shifted toward the debt pile of Adani Group companies after a bruising report from short seller Hindenburg Research wiped out more than $120 billion of the empire’s market value. At least 200 financial institutions around the world — including the likes of BlackRock Inc., the world’s biggest asset manager — have had exposure to Adani Group’s $8 billion in dollar bonds, most of which slid into distress after a short-seller’s fraud allegations unleashed financial turmoil.
The long list of funds with exposure to Adani’s debt underscores how much demand there was to invest in the group before the short-seller report caused its stocks and bonds to tumble. To restore confidence in the conglomerate’s financial health, billionaire Gautam Adani is in talks with creditors to prepay some loans backed by pledged shares.
His flagship firm, Adani Enterprises Ltd., based in the tycoon’s home city of Ahmedabad in western India, posted on Tuesday net income of 8.2 billion rupees ($99.1 million) for the quarter ended Dec. 31, compared with a loss of 116.3 million rupees in the same period last year.
Adani Group companies said in a stock exchange filing that it faces no material refinancing risk and there is no near-term liquidity requirement. The company also has no significant debt maturing in the near term.
There weren’t enough brokerages tracking the company to derive an average profit forecast.
