The shares of some companies owned by India’s Adani Group rallied Tuesday, at the start of a crowded week of earnings releases from the subsidiaries of the embattled conglomerate.
Adani Enterprises Ltd. 512599 , the flagship part of the group of companies owned by billionaire Gautam Adani, closed the day 14.6% higher, reversing some of the heavy losses it sustained in the wake of a scathing report by U.S. short seller Hindenburg Research. The repayment announcement and the relatively positive sentiment from earnings results of Adani-linked companies this week led to the better performance in share prices, said Avinash Gorakshakar, head of research at India-based Profitmart Securities. But he said “today’s swing can’t change the companies’ fundamentals,” pointing to the recent cancellation of a share sale and the likelihood that Adani companies would find it tough to raise money in the debt markets.
Adani Ports & Special Economic Zone reported on Tuesday that net income had fallen 13% from a year ago to about $161.5 million, for the third quarter ended December. The company plans to repay debt of about $604.2 million over the next financial year. The repayment is expected to improve its net debt to earnings before interest, taxes, depreciation and amortization ratio to about 2.5 times, it said in the report.
The companies followed Adani Transmission 539254 which released its own quarterly results after the market close Monday showing both revenue and profit rose by double digits.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Reuters - 🏆 2. / 97 Read more »
Source: Reuters - 🏆 2. / 97 Read more »