Ahead of Q3 earnings result, Adani Group cuts revenue target by half, likely to hold off capex: Reports

According to reports, Adani group, the conglomerate owned by billionaire businessman Gautam Adani has slashed its revenue growth target by half and plans to hold off fresh capital expenditure after Hindenburg, a US based short seller report released a damning report accusing Adani of large scale stock manipulation and accounting fraud over decades.

Hyderabad: Ahead of the results of its third-quarter earnings for the current fiscal, Adani group, the conglomerate owned by billionaire businessman Gautam Adani has slashed its revenue growth target by half and plans to hold off fresh capital expenditure, reports said. The development comes less than a month after Hindenburg, a US based short seller released a damning report accusing Adani of large scale stock manipulation and accounting fraud over decades.

Due to the cut in the revenue target and capex, the Adani Group stocks tumbled up to 10 percent. As of Monday, Adani Enterprises, the flagship entity of the Adani Group was trading 10 percent lower at Rs 1,663 per share. As per the data, Adani Power was trading at Rs 156, which is over 8 percent lower. Likewise, Adani Green, another company of the Adani Group was trading a little over Rs 688, which was 5 percent on the lower side.

Adani Total Gas too was 5 percent lower, trading at over Rs 1,192 a piece. The same was the case with Adani Transmission, which also was trading 5 percent lower at Rs 1,127 per share. Significantly, the downward trend of the Adani stocks began on January 24, the day Hindenburg released its report titled, 'Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History'.

The share price of Adani Transmission on January was over Rs 2,762 which has fallen by over half since the report was released. Likewise, the share price of Adani Green Energy, which was over Rs 1,916 on January 24, has nosedived by over two-thirds since then. Same is the case with other Adani companies. The falling share prices and the consequent selling pressure has prompted the Adani Group to slash the revenue growth target by 50 percent to 15% to 20% for at least the next financial year, reports said.

As per reports, the revenue target is down from the 40% growth originally targeted. Besides, the conglomerate is also planning to hold off its ambitious capex plans to focus on the current weak financial health instead of aggressive expansion, said reports. The cut in the revenue target comes a day ahead of the results of the company's third-quarter earnings for the current fiscal.