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    Adani at AGM: Well positioned to continue programmes with Modi govt now in third term

    Synopsis

    With the Modi-led National Democratic Alliance securing a third term, Gautam Adani, at Adani Enterprises' AGM, highlighted the group’s continued role in India’s growth. Adani addressed challenges from the Hindenburg controversy, emphasizing financial resilience and ambitious projects, including Mumbai’s Dharavi redevelopment. He projected India becoming the world's third-largest economy by decade's end.

    Gautam Adani, Chairman of the Adani Group, addresses shareholders at the Adani Enterprises Ltd. AGM.
    With Narendra Modi-led National Democratic Alliance voted to power for the third consecutive term, the Adani Group is well-positioned to continue the economic and social programs that have driven "spectacular" journey over the last decade, Gautam Adani said at Adani Enterprises' Annual General Meeting on Monday.

    "India is no longer at the crossroads of destiny – we stand on the brink of our greatest growth phase. By the end of this decade, our nation is set to become the world's third-largest economy," Adani said. "Given our demographic dividend, we are well on our way to being the largest middle class that the world will ever witness," he added.

    The Indian billionaire also touched upon the US-based short-seller Hindenburg Research-driven controversy in January 2023, that threw the company into a massive turmoil as it alleged corporate governance lapses. Adani at the time denied all the allegations.

    "Typical short sellers target gains from financial markets. This was different. It was a two-sided attack – a vague criticism of our financial standing and, at the same time, an information distortion campaign, dragging us into a political battlefield," Adani claimed. The Opposition took to the streets, asking for a JPC to investigate accusations. Eventually, the Supreme Court intervened and set up an expert panel to help SEBI probe allegations.

    "Despite never having faced any challenges with debt repayments, we chose to drop our Debt to EBITDA ratio to 2.5x in just six months. It now stands even lower at 2.2x. This approach has not only strengthened our financial resilience but has also increased our headroom for future expansion," Adani said.
    Growfast

      Here are some top takeaways from Adani's AGM:

      1. Amplified by a segment of vested media, it (Hindenburg's claim) was designed to defame us, do maximum damage and erode our hard-earned market value
      2. In this situation, where most companies would have gone under, our liquidity became our greatest asset. To further augment our cash reserves, we raised an additional Rs 40,000 crore, comfortably covering the next two years of our debt repayment
      3. Visualise the world’s largest redevelopment project in Mumbai’s Dharavi as we transform the world’s largest slum over the next decade. It will provide dignity of living to its over one million residents
      4. We recorded our highest EBITDA of Rs 82,917 crore – or approximately $10 billion – a remarkable surge of 45%. This exceptional performance drove our PAT to a record high of Rs 40,129 crore, marking a substantial 71% growth
      5. Three of our portfolio companies – Ambuja, ACC, and APSEZ – are now AAA rated
      6. India is no longer at the crossroads of destiny – we stand on the brink of our greatest growth phase
      7. Given our demographic dividend, we are well on our way to being the largest middle class that the world will ever witness
      8. The foundation for growth is solidly in place and the next decade promises even greater strides
      9. Our spend on infrastructure is expected to grow at a CAGR of 20- 25% and reach a cumulative spend of $2.5 trillion
      10. The foundation for growth is solidly in place and the next decade promises even greater strides



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