From Hindenburg report to Expansion plans – Here are the top 10 things from Gautam Adani’s 2023 AGM speech

On 18 July 2023, the billionaire businessman Gautam Adani addressed its shareholders and presented a bird eye view of the company financials and the roadmap ahead. In its first address after the Hindenburg crisis, Adani called the Hindenburg reports an attempt to damage the company’s reputation. Let see key points from the Annual General Meeting:

1. Disregarded the Hindenburg report:

In the AGM, Mr Adani addressed that the Hindenburg report was a combination of targeted misinformation and he further discredited allegations. The majority of the accusations were dated from 2004 to 2015 and therefore were all settled by authorities at that time. This report was a deliberate and malicious attempt aimed at damaging the company’s reputation. Further, highlighting the timing of the report, he indicated that the US-based short seller Hindenburg Research released the report just before the company’s follow on public offer giving an indication of causing the harm.

2. Robust financial performance of the company:

The Adani group of companies have set new financial performance records for the financial year 22-23. The total EBITDA grew by 36% to ₹57,219 crore. The total income grew by 85% to ₹2,62,499 crore, and total PAT grew by 82% to ₹23,509 crore. The group’s accelerating cash flow further improved the net debt to run rate EBITDA ratio from 3.2x to 2.8x.

3. India poised to become a $25-30 trillion economy by 2050:

Validating India’s growth trajectory to become a $25-30 trillion economy by 2050, Gautam Adani said that he anticipates that India will add a trillion dollars to GDP every 18 months within the next decade. India’s stock market capitalisation will grow to over $40 trillion by 2050.

4. Attracting global investments:

Despite the volatile market, the Adani group continues to attract global investments which are aligned to the group’s long-term approach of building and operating world-class assets.  In March 2023, the group successfully executed a secondary transaction with GQG partners of USD1.87 billion.  

5. Key projects to be launched in Adani Enterprises:

Adani Enterprises Limited, continued to successfully demonstrate its incubation capabilities with new businesses accounting for a massive 50% of its EBITDA in the financial year 2023. 

“The key projects include the Navi Mumbai Airport and the Copper Smelter. Both are on schedule. The Navi Mumbai Airport is preparing for Operational Readiness and Airport Transition by December 2024.

“NDTV is expanding its international programming and coverage to serve a vast range of audiences across the globe. Our data centre JV AdaniConneX is on course to set up 350 MW capacity in the short term – and 1 GW capacity in the medium term. This is by far the largest order book in India,” Mr Adani added.

6. Adani Green to play a critical role in India’s net zero journey:

Adani Green Energy Limited has commissioned the world’s largest hybrid solar-wind project of 2.14 GW in Rajasthan.

“Our operational renewable energy portfolio has grown by 49% to over 8 GW. This is the largest operational renewable portfolio in India. Our focus remains on producing the lowest cost green electron at scale – and I would like to reaffirm our target of 45 GW of renewable energy capacity by 2030,” Mr Adani added.

The company is now building the largest hybrid renewables park in the world – right in the middle of the desert – in Khavda. It will be the most complex and ambitious project that the group has ever executed. Spread over 72,000 acres, this project will be capable of generating 20 GW of green energy. And the company intends to build it faster than any project in their execution history.

7. Adani ports to be profitable by 2030: 

The ports business continued to be a pillar of strength on all fronts. APSEZ continues to be amongst the most profitable port operators globally with a port EBITDA margin of 70% – and, by 2030, the company intends to be not only the most profitable port company in the world but also India’s largest transport utility capable of handling a billion tonnes of cargo annually.

“By then, APSEZ will be carbon neutral and will also have tripled its EBITDA. In the next 12-24 months, APSEZ will commission India’s largest transshipment hub in Vizhinjam, and also a port in Colombo. And our acquisition of Haifa Port in Israel will allow us to link our ports all the way across the Indian Ocean to the Mediterranean, thereby positioning us to capitalize on both the India growth story and the much larger regional growth story,” Mr Adani added.

8. Adani Power to supply electricity to Bangladesh:

Adani Power successfully commissioned the 1.6 GW ultra-supercritical Godda power plant and is now supplying power to Bangladesh. This marks the group’s entry into transnational power projects.

9. Mumbai to get 60% renewable power from Adani Transmission:

Adani Transmission Limited will also take Mumbai to 60% renewable power, thus making it the first mega city in the world to achieve over 50% power from solar and wind.

10. Adani Total Gas expanding at a pace faster than ever before:

Adani Total Gas Limited expanded access to clean cooking fuel to 1,24,000 households this year with a 46% increase in revenue to ₹4,683 crore, he said.

“ATGL is transforming into a full spectrum sustainable energy provider with rapidly expanding urban EV charging infrastructure and biofuel businesses.