July 18, 2024
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Adani Group AGM: Gautam Adani Denounces Hindenburg Report as Defamatory Campaign

Billionaire Gautam Adani, during the annual shareholders meeting of Adani Enterprises Ltd., declared that his conglomerate is stronger than ever, with record earnings, robust cash positions, and the lowest debt ratios in its history. He attributed this strength to the group’s infrastructure focus, which positions it well to capitalize on India’s anticipated infrastructure growth as the country aims to become a $10 trillion economy by 2032.

Reflecting on the past year’s challenges, Adani addressed the severe crisis sparked by a report from US short seller Hindenburg Research. The report accused the Adani Group of stock manipulation, accounting fraud, inflating valuations, siphoning funds, and creating a complex network of shell companies to flout regulatory norms. Despite denying these allegations, the group’s market value plummeted by $150 billion. Adani claimed the accusations were a strategic attack on their financial integrity and reputation, compounded by media amplification, which they countered by returning proceeds from a significant public offer.

Adani highlighted the group’s strategic response, which included raising ₹40,000 crore for debt repayment, pre-paying ₹17,500 crore of margin-linked financing, reducing overall debt, and enhancing business focus. These measures, he stated, strengthened financial resilience and expanded future growth potential. Notable projects mentioned included a 30 GW renewable energy park in Gujarat, the Dharavi redevelopment, and the Drishti 10 Starliner UAV for border security.

Financially, the group achieved its highest-ever EBITDA of ₹82,917 crore ($10 billion), a 45% increase, with net profit rising by 71% to ₹40,129 crore. Net debt to EBITDA ratio improved from 3.3x to 2.2x, and cash reserves reached an all-time high of ₹59,791 crore.

Adani emphasized that these accomplishments, amid global geopolitical tensions, climate change challenges, and technological disruptions, signify India’s rise as a force of stability and progress. He expressed confidence in India’s macroeconomic stability and ambitious growth plans, forecasting that India will become the world’s third-largest economy, heralding its greatest growth phase.

Picture Courtesy: Google/images are subject to copyright

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