As the earnings season for the third quarter of financial year 2023 comes to a close, the Adani Group has reported a mixed set of results. The group’s Q3FY23 earnings have been released for the quarter ended 31 December 2022, with some of its companies seeing a decline in profit but every company reported a raise in revenue. Although the earnings are reported after the dissemination of Hindenburg Research’s report, which alleged that the Adani Group knowingly engaged in fraud, the report does not have an impact on the numbers.
Adani Group Profit and Revenue
Adani Ports and SEZ reported a decline of 16% in its profit, amounting to Rs 1,315 crore in Q3FY23. Adani Power also witnessed a dip of 96%, with profits totaling Rs 8.7 crore. On the other hand, Adani Enterprises turned a profit on-year, with earnings of Rs 820 crore compared to a loss of Rs 12 crore in Q3FY22. Adani Green Energy, Adani Total Gas, and Adani Wilmar also recorded a profit, with increases of 110%, 17%, and 16%, respectively.
The Adani Group’s revenue figures showed mixed results as well. Adani Enterprises
The Adani Group has come under fire, following Hindenburg Research’s report which alleged fraudulent business practices by the conglomerate. However, these Q3FY23 earnings are from before the report’s release. The company’s stocks fell 50% in the aftermath of Hindenburg’s report, losing over Rs 9 lakh crore in market capitalisation in just a few days. It remains to be seen how the controversy will impact the group’s future earnings and business operations.
On Adani Enterprises’ Q3FY23 earnings, Gautam Adani said, “Our success is due to our strong governance, strict regulatory compliance, sustained performance, and solid cashflow generation. The current market volatility is temporary; and as a classical incubator with a vision of long-term value creation, AEL will continue to work with the twin objectives of moderate leverage and looking at strategic opportunities to expand and grow.”