Adani Enterprises trades in the red ahead of Q3 results: Here’s what to expect

Shares of Adani Group flagship Adani Enterprises traded in the red in the opening hours on February 14, ahead of the Q3 results due later in the day.

Bloomberg estimates indicate that the company may post a revenue of Rs 29,245 crore and a net profit of Rs 582.80 crore, with an expected EBITDA of Rs 1952 crore. In the same period a year ago, the company had reported a net loss of Rs 98 crore on a revenue of Rs 18,757 crore.

At 9:30am, the stock was quoting at Rs 1,690.40 apiece on the NSE, lower by 1.59 percent.

If we look at the bottomline trend, the company posted a net profit of Rs 255 crore in March 2022, Rs 410 crore in June 2022 and Rs 438 crore in the last quarter.

The stock has wiped out half of its wealth since the publication of Hindenburg Research report on January 24. “Key listed Adani companies have taken on substantial debt, including pledging shares of their inflated stock for loans, putting the entire group on precarious financial footing,” Hindenburg alleged.

After the report, a Rs 20,000-crore follow-on issue of Adani Enterprises was called off, despite being fully subscribed.

Also Read: SEBI probing Hindenburg Research allegations on Adani, SC told

“The company’s Board felt that going ahead with the issue will not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO,” group Chairman Gautam Adani said.

The FPO proceeds were to be used to fund projects in the green hydrogen ecosystem, improve existing airport facilities, and construct new expressways. This will now be done by internal accruals.

The company has limited brokerage coverage with only one ‘buy’ call from Ventura Securities.