Adani Group's founder Gautam Adani reappointed as Executive Chairman, restoring investor confidence
Adani Enterprises' stellar financial results lead to Gautam Adani's reappointment as Executive Chairman
5 May 2023
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Kunal Tyagi
Gautam Adani has been reappointed as the Executive Chairman of Adani Enterprises for another five years.
Adani Enterprises' consolidated net profit for FY23 tripled YoY to Rs 2,472.94 crore, while revenue surged over 97% to Rs 1.37 lakh crore.
Adani's reappointment could help to restore investor confidence in the group, which faced criticism from Hindenburg Research a few months ago.
Adani Enterprises, the flagship company of the Adani Group, announced that Gautam S Adani, its founder, and Chairman, has been reappointed as the Executive Chairman for a further period of five years starting from December 1, 2023. Adani’s current term is set to expire on November 30. The move comes after the company released its quarterly and annual financial results and put up an impressive performance across its businesses. Adani Enterprises’ consolidated net profit for FY23 increased threefold YoY to Rs 2,472.94 crore, while revenue surged over 97% to Rs 1.37 lakh crore. Consolidated operating profit in the year doubled to Rs 10,025 crore, as the company achieved a strong operational performance across its businesses.
Adani’s reappointment could help to restore investor confidence in the group, which was subjected to severe criticism from US-based Hindenburg Research a few months ago. The short seller made allegations of stock price manipulation through shell companies, high leverage, and corporate misgovernance by the group, which resulted in the loss of over $100 billion of the market value of Adani Group stocks. The company issued several clarifications and even took steps to reduce debt and pledged shares of promoters. In March, the group received a Rs 15,000 crore lifeline from GQG Partners, which bought stakes in four Adani Group companies, thus calming Dalal Street investors and restoring some stability to the stocks.
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Adani Enterprises’ shares ended nearly 4% higher at Rs 1,911.25, becoming the top gainer on the Nifty50 index. The company declared its Q4 results for FY23 and announced the reappointment of Gautam Adani as its Executive Chairman. His present term will expire on November 30, 2023. The Board approved the reappointment based on the recommendation of the Nomination and Remuneration Committee, subject to the approval of members and other necessary approvals.
Gautam Adani has more than 33 years of business experience and has played a significant role in the emergence of Adani Group as a global integrated infrastructure player with interests in Resources, Logistics, and Energy. The company stated, “Adani’s success story is extraordinary in many ways. His journey has been marked by his ambitious and entrepreneurial vision, coupled with great vigor and hard work. This has not only enabled the Group to achieve numerous milestones but also resulted in the creation of a robust business model.”
The company's consolidated net profit for the January-March 2023 quarter rose by a whopping 137% YoY to Rs 722.48 crore, and its revenue from operations increased 26% YoY to Rs 31,346.05 crore. During the quarter, its EBITDA zoomed by 157% to Rs 3,957 crore. The Board has proposed a 120% dividend, or Rs 1.20 per Equity Share of face value of Re 1 each fully paid up for the Financial Year 2022-23, subject to approval by the Company’s shareholders.
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