New Delhi: Billionaire Gautam Adani on Monday cited record profits, strong cash positions and the lowest debt ratios to say his ports-power conglomerate was stronger than ever and the best is yet to come.
As India moves towards becoming a $10 trillion economy by 2032 and infrastructure is expected to grow by 20-25 per cent to reach $2.5 trillion, the Adani group, being a infrastructure "at its core," is "well positioned to capitalize on upcoming opportunities," he said.
Speaking at the annual shareholder meeting of his group's flagship firm, Adani Enterprises Ltd, India's second-richest person reflected on the unprecedented crisis his conglomerate faced last year following a damning report by a salesman in American short.
"We faced unfounded accusations made by a foreign short seller who questioned our decades of hard work. In the face of an unprecedented attack on our integrity and reputation, we fought back and demonstrated that no challenge could weaken the foundation on which your Group stands. has already been established," said Adani, who turned 62 on Monday.
Hindenburg Research presented a litany of findings, accusing the Adani group of share manipulation, accounting fraud, valuation inflation, siphoning off money and creating a complex network of shell companies that invested in group entities, flouting regulatory norms. The Adani Group denied all allegations, but this did not stop its market value from falling by $150 billion at its lowest point.
"Typical short sellers target financial market gains. This was different. It was a two-sided attack: a vague criticism of our financial situation and, at the same time, an information distortion campaign, which dragged us to a political battlefield," he said. saying.
The report came two days before AEL's Rs 20,000-crore follow-on public offering, the largest ever in India, closed in January 2023.
"Amplified by a segment of created media, it was designed to defame us, cause maximum damage and erode our hard-earned market value," he said, adding that "given the noise," the group returned the proceeds from the offering after successfully raising Rs 20,000 crore.
Talking about the strategy, he said the group raised Rs 40,000 crore to cover debt repayments for the next two years, prepaid Rs 17,500 crore of margin-linked financing, reduced debt and improved business focus.
"This approach has not only strengthened our financial resilience but also increased our scope for future expansion," he said. "The headwinds that tested us became the ones that made us even stronger."
He went on to showcase the 30 GW renewable energy park his group is developing in Gujarat's Khavda, in one of the world's harshest deserts, which will be enough to power nations like Belgium and Switzerland, the Dharavi redevelopment that promises to transform the largest slum in the world. over the next decade, and the development of the Drishti 10 Starliner UAV that will help protect India's borders.
"And the results are manifest in the financial figures we achieved. We achieved an unprecedented milestone in 2023-24. We recorded our highest EBITDA of Rs 82,917 crore, or approximately $10 billion, a notable increase of 45 percent" , said. , adding that net profit soared 71 per cent to a record Rs 40,129 crore, while net debt to EBITDA fell from 3.3 to 2.2 times over the past year.
And all this resulted in an unprecedented level of liquidity for the Group with a cash balance of Rs 59,791 crore.
"With our record results, strong cash positions and the lowest debt ratios in our history, our path ahead is illuminated with the promise of even greater achievements," he said. "The possibilities before us are immense. We are stronger than ever. And the best of us is yet to come."
Adani said that in a world that is at a crossroads of geopolitical tensions, a growing fight against climate change and technological changes disrupting lives and work, the world is witnessing the rise of India.
"This is India's moment," she said. "We are now the force for stability, cooperation and progress in a complex world. And it is India's macroeconomic stability and ambitious growth plans that inspire our confidence."
India, he asserted, is no longer at the crossroads of destiny. "We are on the verge of our greatest growth phase. By the end of this decade, our nation will become the third largest economy in the world," she said.
As India moves towards becoming a $10 trillion economy by 2032 and infrastructure is expected to grow by 20-25 per cent to reach $2.5 trillion, the Adani group, being a infrastructure "at its core," is "well positioned to capitalize on upcoming opportunities," he said.
Speaking at the annual shareholder meeting of his group's flagship firm, Adani Enterprises Ltd, India's second-richest person reflected on the unprecedented crisis his conglomerate faced last year following a damning report by a salesman in American short.
"We faced unfounded accusations made by a foreign short seller who questioned our decades of hard work. In the face of an unprecedented attack on our integrity and reputation, we fought back and demonstrated that no challenge could weaken the foundation on which your Group stands. has already been established," said Adani, who turned 62 on Monday.
Hindenburg Research presented a litany of findings, accusing the Adani group of share manipulation, accounting fraud, valuation inflation, siphoning off money and creating a complex network of shell companies that invested in group entities, flouting regulatory norms. The Adani Group denied all allegations, but this did not stop its market value from falling by $150 billion at its lowest point.
"Typical short sellers target financial market gains. This was different. It was a two-sided attack: a vague criticism of our financial situation and, at the same time, an information distortion campaign, which dragged us to a political battlefield," he said. saying.
The report came two days before AEL's Rs 20,000-crore follow-on public offering, the largest ever in India, closed in January 2023.
"Amplified by a segment of created media, it was designed to defame us, cause maximum damage and erode our hard-earned market value," he said, adding that "given the noise," the group returned the proceeds from the offering after successfully raising Rs 20,000 crore.
Talking about the strategy, he said the group raised Rs 40,000 crore to cover debt repayments for the next two years, prepaid Rs 17,500 crore of margin-linked financing, reduced debt and improved business focus.
"This approach has not only strengthened our financial resilience but also increased our scope for future expansion," he said. "The headwinds that tested us became the ones that made us even stronger."
He went on to showcase the 30 GW renewable energy park his group is developing in Gujarat's Khavda, in one of the world's harshest deserts, which will be enough to power nations like Belgium and Switzerland, the Dharavi redevelopment that promises to transform the largest slum in the world. over the next decade, and the development of the Drishti 10 Starliner UAV that will help protect India's borders.
"And the results are manifest in the financial figures we achieved. We achieved an unprecedented milestone in 2023-24. We recorded our highest EBITDA of Rs 82,917 crore, or approximately $10 billion, a notable increase of 45 percent" , said. , adding that net profit soared 71 per cent to a record Rs 40,129 crore, while net debt to EBITDA fell from 3.3 to 2.2 times over the past year.
And all this resulted in an unprecedented level of liquidity for the Group with a cash balance of Rs 59,791 crore.
"With our record results, strong cash positions and the lowest debt ratios in our history, our path ahead is illuminated with the promise of even greater achievements," he said. "The possibilities before us are immense. We are stronger than ever. And the best of us is yet to come."
Adani said that in a world that is at a crossroads of geopolitical tensions, a growing fight against climate change and technological changes disrupting lives and work, the world is witnessing the rise of India.
"This is India's moment," she said. "We are now the force for stability, cooperation and progress in a complex world. And it is India's macroeconomic stability and ambitious growth plans that inspire our confidence."
India, he asserted, is no longer at the crossroads of destiny. "We are on the verge of our greatest growth phase. By the end of this decade, our nation will become the third largest economy in the world," she said.
