Adani shares lose Rs 55K cr in market cap even after record quarterly profit

The combined market capitalisation of Adani Group companies fell by Rs 54,876 crore, to Rs 10.92 trillion, as investor sentiment turned bearish on Wednesday.

Shares of Adani Transmission fell by 7.7 per cent to close at Rs 886 while those of Adani Power lost 7.1 per cent to end the day at Rs 323.

The stock of Adani Enterprises, the flagship company of the group, lost 6.2 per cent to finish at Rs 2,530.

The company’s market valuation fell by Rs 19,000 crore and stood at Rs 2.88 trillion.

Analysts said that during the extremely volatile Wednesday session, buying in banking, power and metal stocks fuelled a recovery in markets, while concerns over dismal global macroeconomy and fluctuation in US bond markets have made investors adopt a risk averse stance.

The BSE Sensex closed at 65,433 points, up 213 points.

The stocks of Adani Group fell despite the conglomerate posting an all-time high quarterly profit (earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 23,532 crore in the first quarter of the 2023-24 financial year (Q1FY24) — which was 42 per cent higher on a year-on-year (Y-o-Y) basis.

The core infrastructure and utility platform accounted for 86 per cent of the total portfolio Ebitda of Rs 20,233 crore. In a statement, the company said that this gives a high level of stability and multi-decadal earnings predictability and visibility.

“The robust profits have resulted in the portfolio gaining a very strong liquidity position.

"The cash balance at the end of June 2023 was Rs 42,115 crore, 4.2 per cent higher than a quarter ago,” the statement said.

The success of the incubation story continued by group flagship Adani Enterprises with airports, green hydrogen and other businesses saw their profits almost double Y-o-Y. With Ebitda of Rs 1,718 crore, these businesses contributed 7 per cent to the portfolio Ebitda, the statement said.

Since March this year, the promoters of the group have sold shares worth Rs 34,000 crore to GQG Partners, the Australian listed investment firm, in various group companies to pre-pay debt.

The promoters also sold 2.5 per cent stake in Adani Green Energy (AGEL) to Qatar Investment Authority for Rs 3,956 crore.

AGEL is planning to invest a massive $70 billion by 2027 in capacity addition.

Three group companies are now planning to raise funds worth Rs 21,000 crore via the qualified institutional placement route.