Adani Enterprises back to profit in quarterly earnings, vows to cut leverage

Indian billionaire Gautam Adani's flagship firm Adani enterprises, returned to profit in the December quarter. Gautam Adani said that his businesses would bounce back from damaging corporate fraud allegations.

Adani Enterprises posted a net profit of Rs 821 crore for the three months to December, up from a loss of Rs 11.6 crore from a year earlier, in a filing Tuesday.

Ever since the Hindenburg report was released, the group has seen a market cap eroison of $120 billion. Hindenburg Research last month accused Adani group of using offshore tax havens to manipulate stock prices.

In its results note, Adani Enterprises said that a short selle's report alleged certain issues against some of the Adani Group entities, which have been refuted in its detailed response on January 29. "Management of the group has assessed that no material financial adjustment arises to the consolidated financial results for the quarter and nine months ended 31st December, 2022 with respect to these allegations," Adani Enterprises said.

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.