Shares of Adani group firms traded higher for the second session with stocks of seven of the 10 group companies logging in gains against the backdrop of its decision to prepay $1.11 billion of loans on shares ahead of maturity in 2024.
Investor sentiment too got a boost from positive statements by some lenders to quell the turbulence in Adani Group firms and earnings reported by the group also helped drive investor confidence.
Flagship Adani Enterprises ended nearly 20 percent higher at Rs 2,159 a share on the BSE, ahead of its December quarter earnings due later on February 9. Bloomberg analyst estimates indicate that the company may announce a revenue of Rs 29,245 crore and a net profit of Rs 582.80 crore, with expected EBITDA at Rs 1,952 crore. The stock hit a low of Rs 1017.45 on 3 February and since then it jumped over 100%.
Other gainers included Adani Ports and Special Economic Zone Ltd, which jumped 8.34 percent, Adani Transmission Ltd 5 percent, Adani Power advanced 5 percent, Adani Wilmar gained 5 percent and Ambuja Cement was up 0.2 percent. Meanwhile, Adani Green lost 1.4 percent, while Adani Total Gas Ltd fell 5 percent, ACC declined 1.1 percent.
The stocks were under pressure since January 24 and lost over Rs 9 trillion in market value following allegations made by US short-seller Hindenburg Research. The report claimed the company utilised tax havens and raised concerns over its debt.
Rating firms Fitch said that there is no immediate impact on the ratings of Adani Group and their securities after the Hindenburg report. Fitch also said that there will be no material changes to its forecast cash flows. Crisil and Icra said they are monitoring the impact of recent developments on its rated portfolio in the Adani Group.
CreditSights Inc recently said that the exposure to the Adani Group is not an issue for State Bank of India, given the strong provisioning buffer of the lender. SBI's exposure to Adani Group is 0.88 percent of total loans or Rs 27,000 crore as on December 31 and no loans against shares have been provided to the group.
Recent better then expected earnings also improved confidence among investors. On 7 February, Adani Ports and Special Economic Zone (APSEZ) announced plans to repay and prepay loans worth Rs 5,000 crore in 2023-24. This was stated by Karan Adani, CEO of the company, in a recent statement. As of December 2022, APSEZ had cash and cash equivalents amounting to Rs 6,257 crore.
The company's net profit for the December quarter also showed a year-on-year decrease of 16 percent to Rs 1,315 crore. Revenue for the December quarter came in at Rs 4,786 crore, up 17.5 percent, on-year.
Adani Green Energy's consolidated net profit zoomed 110 percent to Rs 103 crore for the quarter ended December 31, 2022, from Rs 49 crore in the year-ago period. Consolidated revenue from operations rose 41 percent on year to Rs 1,973 crore, from Rs 1,400 crore.
Adani Transmission reported a massive 78 percent year-on-year growth in consolidated profit at Rs 474.72 crore. It registered a 22 percent growth in revenue for the quarter at Rs 3,552 crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
