Adani flagship company lowers capex goal to $3.8 bn

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This is the first material correction in AEL’s investment plans after the group was hit by US-based short-seller Hindenburg Research responsible for wiping out more than $100 billion of market capitalisation of Adani companies.

Adani flagship company, Adani sales, Adani shares, Adani capex goal, Adani Group, revised capital expenditure, indian express, indian express newsThe capex plan for five years starting FY25 was announced to be $49 billion. (Express Photo)

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Adani Enterprises (AEL), the flagship company of the Adani Group, has revised its capital expenditure (capex) guidance downwards for FY24 and will now invest $3.8 billion across three business areas, down from $5.3 billion — a 28% drop from its earlier guidance.

This is the first material correction in AEL’s investment plans after the group was hit by US-based short-seller Hindenburg Research responsible for wiping out more than $100 billion of market capitalisation of Adani companies.

Last year, in an analyst call after a quarterly result announcement, Jugeshinder Singh, Adani group CFO, had guided for $5.3 billion capex for FY24 and $5.1 billion for FY23. The capex plan for five years starting FY25 was announced to be $49 billion.

“Due to the market’s dislocation in relation to that made-up short-seller report, we just wanted to focus on the committed capex for the 12-month period, which means our capex ramp-up will be slightly higher in 2028-2030,” Singh said in an analyst call after the Q4FY23 results. FE

 

© The Indian Express (P) Ltd

First published on: 06-05-2023 at 01:05 IST

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